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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (4965)	1/13/2004 4:38:10 PM
From: yard_man	Respond to of 110194

I think GSS and BGO are near being a buy ... Being "assinine" saved me a lot of money in 2002 -- could have saved me taxes, too -- but alas -- nothing goes quite as planned <g> Let me show you what I mean: Suppose you have a stock that has quadrupled from where you bought -- suppose you bought it at 4 and it went to 16 ... You think it is going higher, but near term you are somewhat dubious .. so you buy 12.5 puts -- couple of months out -- stock tanks to 12 -- you sell the puts for 4-5x. and the stock then rebounds How in the heck could that have been better than just selling the stock and buying it back?? if you sell the stock you have 16-4 in cap gains == 12 using the puts and they work perfectly, maybe you book the 4 pts you lost on the stock during the temporary blip down WELL, it almost worked back in 02 <g> that second decline kinda snuck up on me