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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: ViperChick Secret Agent 006.9 who wrote (10839)6/27/1998 12:02:00 AM
From: j lawrence  Read Replies (2) of 42787
 
Lisa,

>> for anyone looking at GM may be good for puts!

I am reading this entire strike situation completely different.

My initial reaction was to short the stock and try for some easy short term profits. I think that the stock does have downside potential in the next month.

However, if the strike last past July 1st, GM will be putting out a signal that they will not be caving into the union demands. That may allow them to finally address their excessive cost structure.

If the strike is long term, at the end of the strike, I will purchase calls near the strike price for six months out.

Ford calls have been very profitable this year.
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