To: donald sew who wrote (56412 ) 10/26/1998 8:53:00 PM From: ViperChick Secret Agent 006.9 Read Replies (1) | Respond to of 58727
Dude..i called all around town and the so called oriental grocery places have never even heard of double black soy sauce...I told you about podunk..but i did run across one guy that says he has it..but he was a character..I asked if he had oyster sauce... and he says..i have what I have so just come in and buy what you need ...cant wait to see the soy sauce..probably covered in dust and years old.... +lisa (74630 ) From: +Jeffrey W Grolig Monday, Oct 26 1998 6:53PM ET Reply # of 74730 Lisa and Option Traders: To sell a wasting asset or hold? My preference is to create a vertical spread. For example, if you have a 41% gain on the 57.5 call and it sells now at 7 3/8, then if you hold and dell drops you could easily lose all your profit quickly. If you sell and dell continues to rally, you will not participate and will kick yourself. If you hold and dell stays in a trading range, you lose your profits as time passes due to time-premium loss. So my preference would be to sell short the next higher strike call, ie the 60 at 6 points. You have created a money spread [AKA bull spread or vertical spread]. 1). The effect is that you do not lose if dell stays the same because the time loss effects the cheaper short call more than the long call and you actually profit from a widened spread if dell remains at 62.5 until expiration. 2). If dell goes down, you lose very little because what you lose on the long call you almost completely make up on the short call. Your total risk is limited to your debit; here 1 3/8 or 137 dollars per spread. Much safer than risking you whole capital. 3]. The best part. If dell continues to rise, your spread widens up to a maximum of 2.5 points allowing you to make another 25% or so profit IN ADDITION to your 41%. So when in doubt, spread!! Good luck, Jeff