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

To: edamo who wrote (7884)	6/1/2000 12:05:00 PM
From: Dr. Id	Read Replies (2) \| Respond to of 8096

this whole g+k philosophy is interesting...i wish i had the brilliant idea that the author had of "predicting the past" and selling the concept to those who never peered into the "rear view" mirror....guess the game works....but it doesn't preclude timing and entry. ltb+h, as mastered by buffett would not work with the high pe stocks....takes many years to recover massive losses.... Ed, I agree that timing and entry are still important when buying G and K stocks. I disagree that ltb and h as mastered by Buffett wouldn't work with the high pe stocks...I think it greatly depends on the stock. The point of the Gorilla Game is that you are chosing high PE stocks that also have a certain lock on their particular market that allows them to recover more quickly in a down market. Cisco and Microsoft are good examples of high PE stocks that are great buy and hold vehicles, as long as their fundamental picture does not change (that's the question with Microsoft at the moment...). Holding CSCO for the last ten years would have greatly exceeded any option or trading strategy (given the uncertainties of timing the market). When it comes to non-Gorilla or King high PE stocks, I completely agree that ltb&h is not a good strategy. Dr. Id

To: edamo who wrote (7884)	6/1/2000 12:43:00 PM
From: PAL	Read Replies (1) \| Respond to of 8096

ed ... you took the words out of my mouth. the naked puts allows for repair strategy, and gets money in the pocket. we are not the type who like to go to the roullete table, bet on a certain number, and if the ball happens to fall to that number, he/she will proclaim what a genius the person is for making that selection. as you have repeatedly posted, especially to the newbies, this is not a get rich quick method, but a way to get decent return on the money: willingness to be assigned, and have the capacity for that. yet, many option primers are reluctant to show repair strategies. of course we have to look at the market. how many times have we been given false readings that reversal was happening? qcom has fallen seven of the last eight sessions in heavy volume. how many newbies bought calls 4 or 5 sessios ago thinking that qcom could not fall even more. is qcom a good buy or goodbye? naked put allows you to be wrong and do a repair. good to hear from you again paul