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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (28152)	2/10/1998 11:26:00 PM
From: DavidG	Read Replies (1) \| Respond to of 53903

Skeeter, No hostility. Just trying to show you the errors of your ways. Do you realize it is almost impossible to lose money on trading stocks like MU...and it really doesn't matter if you are a "forever bear" or a "forever bull". You just have to come to the realization that MU is not a stock that goes straight up or straight down, but rather fluctuates consistently from month to month or two. You must also understand that if this is true you can play this stock blindfolded and still make lots of money. Now the only thing you are doing wrong and I mean only thing is the way your are playing your PUTS. First of all, you hold on to them too long. 2nd, you are buying too far out of the money. The closer the stock is to the strike the larger the PUT will move relative to price...it could work with you and against you...but remember this is a stock that goes up and down, so even if it went against you it eventually comes back to you. It is kind of like playing black or red on the roulette wheel but instead of losing on the first spin you get a few spins b/c your bet(PUT) is in april instead of february...and if you are doing as I suggest black will eventually come up before your PUT expires. Now if you make the assumption that MU is a complete dog and will just keep going down your premium built into the PUT evaporates and MU will probably reverse direction before you take the profit. Just think back on how many times you had a profit on your PUTS but didn't cash in. Now imagine if those PUTs were close to strike and you cashed in after 1/2 point or point. And then waited for the stock to come back to you again to start the PUT position again. ONE other thing, imagine if you played both directions long and short on a stock that never goes anywhere over time but just oscillates forever...unbelievable profits. Good luck Trading DavidG