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


To: pcyhuang who wrote (145)9/15/2006 11:26:12 AM
From: fedman  Respond to of 4080
 
Plus you get the interest on the $10,000 held in your account during that time.

The thought of playing HSOA this way crossed my mind. If I am bullish enough to go long, why not sell puts where the most I could lose would be $3.50 per share, assuming I sell at $5 and the stock goes to zero.

In fact, if I sell puts now, I would have what's known as a "Texas Hedge". I'd get double whacked if the price fell. LOL

Writing puts is a good strategy for making money, especially on stocks you think are somewhat undervalued but are slow to appreicate.



To: pcyhuang who wrote (145)9/15/2006 11:39:44 AM
From: jsabelko  Read Replies (1) | Respond to of 4080
 
pcy,

Can you explain that one more time particularly the if it's above 5 you have earned 15 or 30%. Why two numbers? Is this true even if it is just over 5 say 5.05. I'm not following. Sorry to be so dense on this but options are totally new for me. I just do fundamental analysis at the moment.

thanks,
joby