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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (5795)	1/18/1999 4:28:00 PM
From: Freedom Fighter	Respond to of 78476

James, >>Ditto Shane's questions for me. This strategy is very intriguing to me since I have never traded options, but it sounds too good to be true. For this to be as low risk as your post suggests, there's got to be a stop or something in mind.<< It isn't low risk. I'm sorry if my post suggested that. The losses can be huge if you are very wrong about the stock. The favorable thing about it is this, if you were going to short the stock anyway and you turn out to be very wrong, you will lose a lot less with the options approach because you are receiving premiums. And if the stock keeps moving sideways you can still make money. My idea on the strategy is this. Don't under any circumstances do this unless you were going to short the stock anyway. If you are not a short seller, stay away. Options tend to become all consuming and take you away from an intelligent investment plan of value investing. Wayne