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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (21827)7/18/1998 10:27:00 PM
From: James F. Hopkins  Read Replies (1) of 94695
 
Bill, Ya it's not a sure bet.
I have put that list I gave you in a separate portfolio to see
what they do.

I know I don't have the bucks it takes to make up enough diversity
and to play that 2nd 25 of the Nifty Fifty..as to weight them
even the lesser would have to be 100 shares..

But it just hit me I could have played calls ( leaps ) just out of the
money at the time on most of that group and while I haven't down
loaded their option tables I'm inclined to think the gains percentage
wise would have exceeded by far the gains had I had the portfolio
of stocks.
The rub there is that my commissions on options are higher than stocks & generally makes me want to buy 5 contracts at least. That first
contract is were most of the expense is.

With that kind of leverage I sure wouldn't want to get caught in a BK,
but I don't think we are going to have one now, not before they
get the S.S. money into the market..and it seems that is a sure
thing now, in fact the news of it could be a big factor propelling this market up.
Jim

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