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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (15501)	9/24/2002 8:33:44 AM
From: TimbaBear	Read Replies (1) \| Respond to of 78687

Don Perhaps you and Allen are correct. I have gone with what I thought to be the appropriate risk/reward scenario for this particular situation. I plan to be out of the trade before the end of October, which will leave some time value remaining on the option. I believe if the price drops a few dollars from here and does so within the next couple of weeks, that I'll be able to experience a profit. If, as I suspect, the price drops more than that, well it'll be a better trade still. If I am absolutely incorrect, then I've risked and lost less than $500. I haven't had time yet to become as proficient in options as Allen appears to be, but hopefully life will be long enough for me to master another area when the need is more pressing to do so. Right now, my primary areas of focus are in determining the great buy prices in selected issues and in searching for underpriced bonds. This option play was just a "Oh, by the way!" kind of thing. I probably should not have posted it. Timba

To: Don Earl who wrote (15501)	9/24/2002 7:22:22 PM
From: geewiz	Respond to of 78687

I still like large cap insurance companies for put options. With the third quarter looking like it'll end close to the bottom of the chart, there should be a bloodbath on mark to market adjustments on their investments, not to mention their huge exposure to corporate debt. Not a recommendation, just an opinion. I agree, in addition to spending tens of millions defending executives and directors from a multitude of law suits that are only beginging to show.......even if they don't pay a settlement these attorneys will be costly. later, art