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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: jwk who wrote (17203)5/19/1998 6:53:00 PM
From: Y2k_fan  Read Replies (1) of 31646
 
It's pretty common that stocks will drop before option trades become available.

For me, the actual price no longer matter that much, you can keep your long term investment and partially lift your profit or borrow from your stocks through sells of covered-calls. This is like making your prime residence a rental property. Yes, it's great to have a castle as your prime residence, but you won't make money until you sell your house, and that means "TAXES." Now you can limit your gain and cut your loss on covered calls. You can even buy puts to protect your investment from dropping overnight.

It will make TAVA less volatile. The MMs know that there will be people trying to write covered-calls, they have to make the price low initially. And it's understandable.

People who get panic and sell now are giving up the great pleasure on option plays, IMHO.
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