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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Clappy who wrote (29437)	8/18/2000 1:48:41 PM
From: Sully-	Read Replies (1) \| Respond to of 35685

Hi Cpalster, How long do you wait before you roll up? Do you look for the stock price to go 10% above strike, 20%, 30%, or do you simply wait until expiration? Once again, my feeble opinion is that it depends..... if the underlying has run up due to significant news & there is little chance that the underlying will not come back below your strike price, then you may want to roll up & out..... if the underlying vehicle has run up, but it is due to other factors, like following the market up on no real news, I believe that Volty says that you should sit on it until expiration & roll up & out then if it remains above your strike price. Other things to consider in this scenario is whether your strike is above or below your original buy & by how much..... what your cost basis is on the vehicle, IE, have you lowered it over time such that the strike price is actually below your cost basis..... there are lots of variables including your own style & risk tolerance. The key in all of this is to have a plan, work the plan & be prepared to take action even when things are dicey. Both Voltaire & RR always stress the importance of protecting the vehicle. Make that a significant part of the plan & that may help you make more appropriate decisions when the time comes. Tim