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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Timetobuy who wrote (4741)	11/11/2001 5:35:38 PM
From: FR1	Read Replies (1) \| Respond to of 99280

Your second set of numbers make sense to me (I don't think the premium appreciation is correct on the first set - 18 to 35). Anyhow, it is just as I thought. It works well in a uptrending market with a reasonably sized bet like you mentioned ($60K). Just for me, though, it is too risky to put up that much money betting on a 60 day appreciation at this time in our economy. What happens if you get a short term sell off which brings you down closer to your strike price? I am sure you would watch it every day and establish a selling point well above your strike price but rumors, downgrades, collateral damage from others in the sector or a terrorist one day bombing could easily cause a short term 10+ point drop getting you to your bail out point. Getting stuck below the strike price, of course, would put you in danger of losing absolutely everything. I am sure it works for you, though, and wish you luck with it.