Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : MicroStrategy Inc. (MSTR) -- Ignore unavailable to you. Want to Upgrade?

To: Kid Rock who wrote (499)	3/22/2000 3:55:00 PM
From: Turs	Read Replies (1) \| Respond to of 717

Kid - I would buy some puts that are considerably out of the money (maybe with a strike of $50) and an expiration date several months out (at least three). When you buy puts, time is against you and the premium you've paid will erode as the expiration date nears. That erosion accelerates during the last 6 weeks. So you want to give yourself enough time for the "bet" to work out. If you're right on the move, those puts that are rather cheap now will increase maybe 10-fold. I doubt MSTR is going to $10 and puts with a 50 exercise price may expire worthless. But either way, it will probably take 2-4 months to find a bottom. Your other way of betting on a down move is by selling calls. But in that case, you are exposing yourself to unlimited losses if the stock turns around and starts moving upward. It's the same as being short. I generally like limiting my exposure - rewards me if I'm right and lets me sleep at night. Turs