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.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (3594)	4/28/1998 6:29:00 PM
From: taxikid	Respond to of 164684

wish i woulda went long after my 18 points... dooh.. remember i said they would split... maybe i should pay more attention to the market and less to my own internet company? nah.. be well taxi

To: Oeconomicus who wrote (3594)	4/28/1998 6:33:00 PM
From: J.S.	Respond to of 164684

I was responding to an earlier post where I mentioned a spread position with the top leg being May 75's. Also the May 75's may yet increase in value. Actually, I like to buy puts below 1/4 and hope for a downturn. Then I sell in the money puts and a strike price just above hoping for recovery. Example: I have now 25 May IBM 100 puts. If the market has a major correction I will sell May 105's or 110's at over $5 and $10 respectively and hope that by expiration IBM will be back to around 110. Of course if IBM goes to $90 then I just sell the puts directly. My hope is to someday make 50 to 100 times my initial investment. It usually doesn't work and I close out at a loss or at a slight gain. However, when it works it will be worth it. At the extreme one could buy at 1/16 and make $10 on each contract without the contracts bought at 1/16 ever being in the money. There is absolutely no risk except the 1/16 premium since you only sell when the worst case loss is less than the premium received. Joe