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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?


To: David Howe who wrote (5424)11/3/1997 2:21:00 PM
From: yard_man  Respond to of 13594
 
Buy more time. If the stock price just "stays there" your 'investment' will erode quite quickly. With 3 - 6 months of time you pay more and aren't as leveraged, but it's more likely to pay off.

When short an option try to do the reverse -- use the volatility to get a good price. But don't let your stock (calls) or money (puts) be tied up for long periods of time.

Consider spreads and/or hedging your position.

Always decide on exit positions before entering a position.

Just some ideas. One more, do a lot of paper trades first. Much less expensive kind of education.

Also, your first pick is a good one -- volatile, bloated and virtually worthless.



To: David Howe who wrote (5424)11/3/1997 7:28:00 PM
From: Douglas V. Fant  Respond to of 13594
 
david,

My first post here too! I sold AOL short today, after two days of rallying (friday and monday). Just curious amongst members- do you all prefer to sell a stock short or to buy/sell puts in order to establish your short position?

Sincerely,

Doug F.