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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Challo Jeregy who wrote (5603)	8/9/1998 5:00:00 PM
From: chartseer	Read Replies (2) \| Respond to of 34811

keep it simple. Think XYZ is going down buy the puts. If you are long XYZ and want to sell covered calls that is a different story. Buying puts limit your obligation. Selling naked calls could have unlimited consequences if say ZZZ corp decides it wants to purchase XYZ corp at 58. Keep it simple and limit your risk to the purchase price of the puts. Now can someone tell me the odds/percentage risk reward ratio of the twenty box straight down with a three box reversal. Can I buy it now or do I still need NYSEBP to reverse?

To: Challo Jeregy who wrote (5603)	8/9/1998 5:02:00 PM
From: james ball	Read Replies (1) \| Respond to of 34811

In your example of owning a stock at $30 you expect to go down, sell the stock. IF you choose to hold it and you believe it will go down then sell an in the money call. If you like the stock but feel the market in general is risky and you would like ot do something defensive without going hog wild then sell the at the money call. If you think the stock still will rise but market is risky then sell out of the money. Lots of options, no pun intended. Tom Dorey