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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?


To: Sandra who wrote (32548)12/22/1998 4:15:00 PM
From: Gator  Read Replies (1) | Respond to of 119973
 
Hint for easy money every year: Find out which S&P 500 stocks have increased in market cap the most from the beginning of the year till about mid-December. Then buy heavily in to the top couple (I buy options). HD (Home Depot) had one of the largest increases in market cap (and gained the largest in percentage of its weighting in the S&P 500, now about 6% of the total). Index funds tied to the S&P have to rebalance their portfolio to match the S&P weightings, so a ton of buys come in to the stocks whose weighting in the index has increased.

I bought HD Jan 55 calls 9 days ago when the stock was at 52 1/2. All the buys came in from the index funds, stock ran up to $59 today, and my calls have gone up 500%.

Easy money.

Gator