SI
SI
discoversearch

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.
Strategies & Market Trends : 50% Gains Investing -- Ignore unavailable to you. Want to Upgrade?


To: excardog who wrote (22366)11/2/2000 11:56:06 AM
From: Dale BakerRead Replies (1) | Respond to of 118717
 
Shorting and puts - I do a bit of both, depending on the risk of a squeeze. I only play puts in ZIXI because it could spike 20 points on the right news. But sub-$10 dot.com trash is usually better to short outright, since premiums eat up a lot of potential profit.

Rookie shorts get in trouble shorting a gator like EXTR and then panicking when they go underwater 10-15 points in a momentum rush.

To sum up - put premiums are worth paying if the downside risk (i.e. a squeeze) is possible.

I was hoping for better in DNR and TMR in terms of a bounce, but I will hold through January and see how they perform.