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

To: im a survivor who wrote (32569)	3/7/2001 11:11:10 AM
From: Voltaire	Read Replies (2) \| Respond to of 65232

My man, for that price you hold on. RMBS is the thing that has me strapped right now but i have not lost faith at all, just money. The key is for us to just finish in the green today and I feel we should be up good for the week. At least market now looking forward. Just when the Houses got back in control, out comes Abby. Just hang in and leave the margin man alone. V

To: im a survivor who wrote (32569)	3/7/2001 11:34:02 AM
From: edamo	Read Replies (1) \| Respond to of 65232

keith...."by my calculations $1 is better then nothing" you have ten weeks until expiration...the underlying is at 43.5....it would have to move 32.5 points for your option to be worth $1 on expiration.... apply logic....what do you come up with? guess the fear of "opportunity loss" is greater then the fear of "capital loss".....very same thinking that decimated portfolios in the last year.... guess i'm not a gambler... ed a. p.s...showing the may 75 at 1 1/8 x 1 3/8.....

To: im a survivor who wrote (32569)	3/7/2001 12:17:57 PM
From: RR	Read Replies (1) \| Respond to of 65232

Hi Keith: 1.) You know what I'm going to say first. Preserve capital is rule 1. You didn't do it. Lesson learned. 2.) Don't ride calls you're holding into the dirt. When the position turns against you, get out. Discipline. No emotions. Don't fall prey to the notion "It will come back." 3.) RMBS has to go up 76% by May exp from here for you to get that dollar. Same analogy as Ed used. Doubt it will happen in this market. Time is running. You are roughly 70 days out. I usually close my calls well before 60 days before expiration. Time erosion factor.... 4.) If it were me, I'd probably take the buck and run now. At least get something out of them, even if it's just a buck. On the other hand, you might get a little bump up on the Fed news/anticipation in the next couple of weeks, then get out. However, time will have whittled away at you even more by then, and, frankly, I doubt those calls would respond too favorably to make that much difference anyway being so far OTM with a May expiration. Good luck. RR