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Technology Stocks : AOL, now I get it

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To: Leo J. Capobianco, DO who wrote (347)1/25/1997 8:43:00 PM
From: James F. Hopkins   of 496
 
LEO: just my two cents, hold your puts untill you get the nerve
and feeling it's time to buy say some march or april calls,
when you think she is about to turn back up and the calls are cheap,
then buy enough calls to lock in your profits, but hold your puts
( if she reverses ) the calls will go up in value..so your locked
into your gain..if she contiues to go down a lot you may loss the
call money but will make more than enough on the puts to offset that, a lot more if the floor drops out from under her..and remember the calls are are out front..and will hold their value or decrease
in value much slower than the puts gain..you can wait untill you
see the reverse..to sell the puts...if you have some calls out
front..it's a hedge style..but one that for a few extra bucks,
will let you sleep at night and not haveing you kick yourself in
the butt for selling to soon...so before you sell the puts ask
yourself..about hmm would maybe this be call time..if so like i
said continue to hold..just in case..the calls have you covered
on the up side..and if any thing really big happens..you can
exploit it..say a small up trend was to start then you close the
puts..first..if the trend is set then hold the calls..till you want
to buy more puts..each time steping forward..
with this kind of disapline you will be doing more than just
wishing..you will get the tiger by the tail..close both positions
if she goes flat for 3 full days..you make money in options on
movement, bears make it bulls make it, and hogs get slautered..
read and learn about hedging tactics..
Jim
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