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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Ravelson who wrote (4728)	3/12/2000 7:47:00 PM
From: the options strategist	Read Replies (1) \| Respond to of 8096

Bruce, I tend to think your plan is too general. You want your trades to be as non stressful as possible. Therefore you want to set goals on what you would do in various situations. What I would do is set a target and stop loss. I would look at QCOM's support level and if it goes south and break that level, I'd close the position and re-evaluate contingent on the market(s)and circumstances. In this environment, I'd probably take profits early rather than wait for april expiration. Example: Let's say by this months expiration (mar 17) QCOM drops to 119 and the market is looking bad. I'd take my losses and maybe set up a bear put spread. (more about that later) But let's say by mar 17 QCOM goes north to 155. I would have app. 2,125 profit. I may take profits and (depending) roll up for another april spread. I'm kind of skittish in this market and will take profits sooner than I may in a not so toppy market. But you may want to wait until ap.expiration. You have to decide what is best for you. But whatever you decide, you do want to have a specific plan for target and stop loss, etc. In the money puts means the stock can be put to you at any time, not just at expiration. It is rare but you need to be aware of this. In your case if the stock is put to you, you are covered but you want to ask your broker how they would handle this kind of situation. jj