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


To: Kirk © who wrote (419)10/3/2006 6:01:28 PM
From: fedman  Read Replies (1) | Respond to of 4080
 
Well, assuming that the stock price would stay low for a very long time. I'd take a hit.

So far that hasn't played out. Let's say apple's insider options take a $20 premium off the stock of the price. I'll just write out of the money calls for a while and take a loss in the end.

what else can I say. It's not perfect strategy, or else I wouldn't be able to do it.



To: Kirk © who wrote (419)10/3/2006 6:41:26 PM
From: Bridge Player  Respond to of 4080
 
<<What do you do if right after you buy the second half at $33 some news is released that gaps the stock down 30%?>>

Whatever you would do if the same thing happened right after you do a buy-write.......