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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (92)	1/11/2000 5:45:00 PM
From: Zakrosian	Respond to of 30051

I have shorted amazon and bought puts in Yahoo. Both times I got screwed. This is why you can't trade based on FA, especially with shorter term options where you only have so much time to "be right". That's precisely why I prefer to deal in long term options. Directionally, I think your decision was right - it's just that it might take a year or two before it becomes profitable. For example, before getting into options, I looked at everything I could find about ORCL after it tanked to about 20 and decided it was a no-brainer so I bought it. Six months later it was trading at 12. Short term options would have been a disaster, buy-and-hold worked reasonably well, but LEAPS would have been better.