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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: Rashid Garuba who wrote (1984)	7/29/1998 6:35:00 PM
From: majormember	Respond to of 59879

Rashid, <Maybe you can explain in dummy language your whole OSTE call trade?> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ When OSTE was $21 two weeks ago, my Uncle who is very wealthy and well connected told me OSTE was his second largest holding. Years ago he gave me VISX at $11. Because of my wife (ex-wife now) I only bought 250 shares. Well, in three months I sold it at $37. Nice percentage gain, but small gross profit. Few months ago he gave me NFX at 20 1/2...Didn't buy, went to $35 in two months. When he gives me a stock, I figure it's good for min. 15 pts. Now we come to OSTE. I could have bought (on margin) about 3000 shares. With about the same cost, I decided to buy xxx Nov. 25 calls and xxx Nov. 30 calls. As I'm looking for about 15 pts. or $34-36 for OSTE, the Nov. 25's should be worth about $15-18, as once you go above your strike price, the option should rise dollar for dollar, plus a premium. My Nov. 30's should be worth $5-8 given same scenario. Ergo, I stand to make A LOT more $$$ with calls then if I bought the common. The downside is if stock tanks you could lose your ENTIRE investment. Before I jumped in I checked the TA also...Mark said it looked very good, and even a novice like myself can see how good it looks on a chart. Unlike Mark and perhaps yourself, right now I am after some BIG MONEY. Afterwards,I can put some in mutuals, etc. and have just a "trading acct." <Also how is SNRS going to take care of you as you age??> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I say SNRS is my retirement stock because after much DD and a Great thread who has DD this to death, SNRS is going to be a monster. Where VISX is today with their excimer doing hyperopia and LASIK (cutting the cornea) at $2500 per eye, SNRS is for hyperopics, who make up 31% of the population vs. 21% for myopics. This is a $2 BIL. Dol. Market with just a 5% penetration rate. SNRS is a NON-INVASIVE procedure, the cost is $1000 per eye. The laser costs $200,000 and no maintenance vs. the Excimer which costs $500,000 and 50K per year maintaince. SNRS was Stock of the Week at S & P...Red Chip Review and Penn. Merchant are the only anylists following it. I believe this will be a major competitor to eyeglasses and contacts, and once FDA approved, if Wall St. starts building Castles in the Air, SNRS could easily hit $35 in 12-18 mo. Regards, Skane P.S. I invite you to visit the SNRS thread...very good group. You should follow the links beginning with post #760 for the DD....