E*Trade (NYSE:ET) Message Board

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Non-Tech : E*Trade (NYSE:ET)

ET 17.63

+1.1%

3:59 PM EST

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To: robin 187 who wrote (6123)	4/20/1999 2:35:00 PM
From: Trevor Quest	Read Replies (1) of 13953

Robin, tough call on the options and this is a classic example of why it is difficult to make money with options. Your risk is clearly to the downside. Your strike and time are against you. If you do not sell and we see some profit taking with EGRP you could find yourself 10 to 15 points out of the money with only three weeks left. You will probably see decay of a 1/2 point to a point everyday and the spread is going to widen as we get closer to experation. On the flip side, if EGRP runs up here you are going to be in the money. However the stock needs to close above 109 for you to breakeven. Its true, if EGRP goes to 150 your are looking great, but the probability of that happening is slim (I am long and would love $150!). My advice, you got into this trade because you have a view. Has your view changed? Are the May 95's the best way to play your current view? If you are confussed by the recent price action maybe the best thing to do is take some profits, catch your breath and look for some new opportunities. This is just my opinion. Good luck with the trade! Trevor

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