Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Tokyo Joe's Cafe / Anything goes -- Ignore unavailable to you. Want to Upgrade?

To: J. C. Dithers who wrote (4168)	4/3/1998 8:54:00 AM
From: TokyoMex	Read Replies (2) \| Respond to of 34592

Puts is an options that forecasts a down side on a stock,, it can be used to hedge your gain on AMZN... For instance,, let say you have 1,000 shares of AMZN ,,and like you said you want to protect the gain,,but afraid of down side,, as high flyers usually do come down on Unibomber effect, unless a split is used.. I suggest strongly to buy some puts,, in your case say based on 1,000 shares,, buy like 3 - 5 contracts,, 1 contract is equal to 100 shares.. also you have choice in the time frame ,, this you have to make your own choice, as all options are time erosive... By having puts you protect your gains but also could be a boom to your gain as commons have a good chance of rebound ,, no matter how long it takes ,, in other words no time erosion and fundamentally the idea is that the commons should appreciate with time... By spending a minimal amount you will be able to sleep better at night.. Talk to your advisor,, as to how many contracts are required for the possible down side vs the loss risk factor,, 3- 5 contracts should be more than ample.. although I have seen people do 2 - 3 and come out clean ,,in some cases.. Good luck and enjoy your good fortune... with AMZN's amazing growth ..