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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (16323)	11/14/2000 10:37:04 PM
From: Voltaire	Read Replies (2) \| Respond to of 65232

Now hold on just a minute. I promised you a million bucks for a KISS on RMBS the night we talked on the thread if you would spend $100,000. Those calls that night and two hours the next morning were 9 3/4 for the May 2001 75's. Let's give you only 100 contracts or 10,000 shares via options. They closed today at 15 1/4 bid. I am $57,500 up on my bet for a kiss. Vster looking forward to the million dollar kiss

To: freeus who wrote (16323)	11/14/2000 11:04:13 PM
From: PAL	Read Replies (1) \| Respond to of 65232

freeus: you are correct that option behaves quite differently from stock. On top of that the volatility continues. a person who is trained as a ltb&h will have to adjust his/her thinking about an option due to limited life of the instrument. the days of bragging ten bagger in a short period of time is over. remember the rule of thumb: if your call option doubles, sell half of it and preserve your original investment. this idea applies to short puts as well. always know where the exit door is and know when to use it. good luck paul