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

To: r.edwards who wrote (24013)	12/11/2000 9:22:00 AM
From: Voltaire	Respond to of 65232

Yes, going to hold for earnings then roll-em. Normally don't hold a damn thing through earnings but RMBS is as near a slam - dunk on earnings as any stock out there at the moment. volts

To: r.edwards who wrote (24013)	12/11/2000 9:28:51 AM
From: edamo	Respond to of 65232

r.edwards...."rmbs....roll out to may" assuming you are long calls, the question is are your long calls in a profit position........if so, use mental stops to maintain profit, and monitor carefully the time decay..... if you are in a loss, and have no intrinsic value, then the oft time used bull market strategy of "rolling long calls", is not so wise....in essence you are selling a position at a loss, adding more cash to buy a new position, and the new cash is not buying anything intrinsic, but merely time, which ultimately decays. no constructive or beneficial strategy to repair long positions, even though some were created and applied in a fast moving bull market...the new position only increases your cost basis, which raises your break even point... not much different then selling a long common position, with the strategy of buying it back when the share price increases....