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Strategies & Market Trends : Gersh's Option trades -- Ignore unavailable to you. Want to Upgrade?

To: Win-Lose-Draw who wrote (646)	10/15/2008 11:32:05 PM
From: Mark Johnson	Read Replies (1) \| Respond to of 652

Actually it lost a little more than 65% but from I what I understand it does alot of work for the military (if I am wrong don't shoot me) and stock is already anticipating a democratic win. Stock trades as if the books are being cooked or something. I think Jim Cramer did a piece on this one. I am not a follower of him (he's recommended many losers) but like the fundamentals of the stock. I took a second look at the options. A more conservative play (assuming you get the right price) is to buy straight up the March 2009 $10 call options, no more than $1.30 to $1.40 more than a premium to what the stock trades at so, you would not want to buy the option for no more than around $6.40 at present prices. This way you would get most of upside when it rebounds. If it goes down, say to $10 or $11 within the next 4 weeks, a guesstimate I would say is that the option would be worth between $2 and $3, limiting the downside risk. Companies that are legit and have a significant amount of cash rarely trade below the level of cash on hand per share. Best trading and profits!!