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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: md1derful who wrote (704)	1/14/1998 3:37:00 AM
From: Steve Fancy	Read Replies (5) \| Respond to of 22640

md1derful...sounds like a pretty safe bet. If you don't mind my asking, do you plan on holding till expiration, or getting out with x% profit? A good question that's been rolling around in my mind is how TBR options will be split. Will they trade ADR's and options on all the resulting companies? You may want to keep a close eye on this. I very rarely buy calls anymore, due to my inability to time the stocks I used to buy them on. I always stuck with current or next month out of the money options though and got burned more often than not. I could never bring myself to shell out the premiums on options out 6 months or more...always felt I could make more money buying just a little time premium. In TBR's case though, if the stock hits the minimum price target of $144 in the next year, you're looking at $39 intrinsic value alone. If the stock drops below 100 again, I may buy some short term calls...this stock is an exception...could probably straddle 105 for FEB and make money on both sides. Anyway, good luck and welcome aboard the TBR roller coaster. sf