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Technology Stocks : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: PAL who wrote (11319)	7/1/1999 9:48:00 AM
From: AmericanVoter	Read Replies (1) \| Respond to of 19700

WOW Paul, and THANKS for your detailed reply... I do really mean it... now I have to take this to my AG Edwards broker and have him execute it... best regards amein

To: PAL who wrote (11319)	7/1/1999 10:53:00 AM
From: freeus	Respond to of 19700

Thanks Paul.... I like this, the more I study it the more I like it. You are right..... have faith in a company but not too much and not with "forever" committment Freeus

To: PAL who wrote (11319)	7/1/1999 5:20:00 PM
From: PAL	Read Replies (2) \| Respond to of 19700

The following post has generated so many PM to me asking if I can teach them about option and stock: Message 10344787 Even though I would like to answer each PM individually, unfortunately, due to the volume I received, I won't be able to to that. I apologize for responding those PM's in this post. a. PAL, that is me, is not an expert in the stock market, or in option. My knowledge is a pre-school level as compared to many experienced and astute investors like Mark Peterson, edamo, Don Martini etc. b. Since my post illustrate how you can have a six to seven bagger in CMGI, it seems that the method is a sure thing. IT IS NOT. AS A MATTER OF FACT THERE IS A LOT OF RISK INVOLVED . You have constantly be on top of the situation. c. If you want to learn more, there many books you can go to such as: a) Motley Fool (or you can go to their website) b) Peter Lynch or c) William O'Neil. When you Call Investor's Business Daily for a 2 week free subscription, they will also send you tapes describing CANSLIM method. d. If you want to learn about option, just try to walk before you run. Maybe option is not for you, but if you want to know the general principle, start with something free: contact Option Industry Council (OIC). That institution gives free option seminar covering basic options, leaps and advance workshop, usually in a big hotels throughout the US. There is no obligation, nobody tries to sell anything, they even give you cookies and refreshment and validates your poarking ticket. So there is no excuse for not attending when OIC holds a seminar in your area. e. Books on options; The grandaddy is of course McMillan: "Option as a Strategic Investment". This book is updated every so often. There are other books like Thomsett "Getting Started in Options" or Bittman "Options for the Stock Investor". f. Before 'you start trading option with your hard earn money, do paper trade for 6 months: write it down what you buy and what you sell, keep a good record, and do it as if you really doing with real money. There is a lot of work, but make sure you have a discipline about it. g. Please do not rely or based your decision on posting by me or other persons on this thread. Even the best still makes a mistake. And as I said before, I am one of the worst since I am still learning. My knowledge is a drop of water to an ocean. h. After you make money, always remember: Share the wealth, give to the needy, remember your favorite charity. You will harvest what you sow. Planting good seeds will surprise you how happier you will be. Good Luck to everyone, and hope I answer those who PM me. Paul

To: PAL who wrote (11319)	7/1/1999 6:01:00 PM
From: kcmike	Read Replies (1) \| Respond to of 19700

PAL, Thanks for your well laid out "CMGI triple-play". There is one thing I would like for you to add to the discussion, if possible, Especially for new options investors. On the naked put side, many brokers, including one of mine, have almost ridiculous margin requirements. For example, OLDE requires 25% of the value of the underlying stock, plus the premium, when writing a naked put. So if you write a Jan '01 110 put when CMGI is at 110, and receive $43 premium, you would actually have to deposit $27.50/share into your margin account. And strangely enough, as the stock rises, and your position actually improves, you have to DEPOSIT more money, assuming that 25% of the stock price increases faster than the then-current premium value decreases. So with OLDE, you would have the following scenario: Buy 100 CMGI @ 110 = -$11,000 Sell 1 Jan '01 110 call @ 52 = + $5,200 Sell 1 Jan '01 110 put @ 43 = 0 see note below Addit. 25% of stock price margin requirement= - $2,750 (At OLDE, the put premium of $4,300 goes into account, but cannot be used as it is held for security on put position. It does accrue interest though). So bottom line - you would have to send OLDE $8,550 to do this trade. If the stock went over 110 by Jan '01 110, you would pocket $15,300 ($11,000 for sale of stock plus the $4,300 that is released from the margin requirement). If I am figuring this right, this is not quite even a 1-bagger (about 79% return). Please check my calculations, and make sure I am not totally off-base (I'm not a seasoned veteran). If they are correct, it seems you may be better off just being long the stock (if your broker is OLDE that is). On the other hand, I believe Schwab's requirements are similar, with the exception that they only require 10% of the premium to be deposited on the put side. If you have tons of cash in your account, I guess this isn't a problem. But if not, could you please share what you have found as far as margin requirements from your broker? Maybe we all need to change to your broker! Thanks for all of your help, Mike