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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?


To: Sergio H who wrote (7787)8/16/1998 9:15:00 PM
From: Sal D  Respond to of 29382
 
Sergio, it all depends on your perspective. Lets say after the earnings report Mike's concerns were realized and the price of the stock went down the $5 to $20 and Mike now understands he was wrong about the company and want's out. If he had bought the 100 shares outright at $25 and sold then for $20 he lost 20%, $500 plus lets say $40 commission for a total of a $540 loss. On the other hand if he purchased the call option and lost 100%, $150 plus lets say $60 commission for a total of a $210 loss.
Joe



To: Sergio H who wrote (7787)8/16/1998 9:37:00 PM
From: Sal D  Read Replies (1) | Respond to of 29382
 
Sergio, I'm not saying any method of buying stocks or options is better, I am just trying to point out alternatives. Different circumstances could change ones opinion on what he or she feels is the best way to make a purchase.
Joe