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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01 -- Ignore unavailable to you. Want to Upgrade?

To: SnowShredder who wrote (2675)	9/9/1998 10:39:00 PM
From: James Strauss	Respond to of 13094

AMZN: WHG: I chose Oct 50 PUTS because that's the next major area of support... Last week the price dipped into the 60's on an intraday basis... This is the type of probing that goes on prior to a major move... I believe AMZN will break below near 79.00 support all the way down to the 50.00 area... That's why I chose the Oct 50 PUTS... Jim

To: SnowShredder who wrote (2675)	9/9/1998 10:54:00 PM
From: Robert Ague	Read Replies (3) \| Respond to of 13094

Since James thinks the price of AMZN would near 50, he buys the out-of-the-money puts since as the price of AMZN falls towards 50, the value of the puts increase. For the OCT 90 puts, they would cost so much, you may as well short the stock, because it would be so in-the-money at 79. For the Oct 35s, the stock would have to drop significantly (not beyond these days?) to realize any gain. Jim feels the best tradeoff is the OCT puts, but the 55s or 60s would also work, but are more expensive since they are closer to the price of 79. Good reading on option and options strategies: Options as a Strategic Investment, McMillian (Academic Level, but very good) The Complete Option Player, Trester (Layman's terms) Also, check the threads on Options Strategies; Covered Calls; Tech Options Rob