Roger's 1998 Short Picks Message Board

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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Roger A. Babb who wrote (16836)	1/10/1999 10:41:00 PM
From: McNabb Brothers	Read Replies (2) of 18691

Roger, I sold some Feb. $200 calls on Friday for $28! Tomorrow I'm going to try and sell some more between $20 to $25 or hopefully higher. Most people would see this trade as very dangerous, but if one is willing to go short at $200 then it is a safer bet then being short the stock at these levels. AMZN would have to go to $228 for me to begin to lose money, where as if I had went short the stock at $175 when I sold the calls on Friday and it goes to $228 then I would have a $53 point lose. True I will not make as much if AMZN falls hard, but if it stays below $200 and all the time value expires, it would be the same as buying the stock back to cover a short position at $147 if one had sold at $175 Friday! I intend to trade half my position on dips and rallies and plan on holding the other half to option expiration in Feb. Hank

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