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Strategies & Market Trends : Lessons:"How to" properly exploit Price DROPS, in stocks -- Ignore unavailable to you. Want to Upgrade?


To: Jeff Meek who wrote (647)3/24/1999 2:47:00 PM
From: Jim Goodman  Read Replies (1) | Respond to of 660
 
thanks, "sm" means "servicemark", I have trademarked registered/protected/reserved both the terms "PSYCLE(S) sm" nationally....
we suggest doing only diversified portfolios of LT, ITM options, where suitable, vs. ST, OOTM, options, period, for obvious, logical reasons explained early in this thread....
we never "short" unless stock has no options available, for many reasons explained in my special "Downside" booklet (and elsewhere early on this thread, but I don't remember where exactly), one being, takes too much money and equity vs. options, right ? also, B-firm internal rules, liquidity, availability, less % reward when correct, etc., obvious....
and/but, note, there is no such thing as an "extended undervalued" (your term ?) stock, right ? but, with low-priced depressed stocks, long, options premiums tend to be too high generally, as explained (and much more) in my booklets....so for those kinds of issues, we lean straight stocks, or margin, where suitable, with close stops....hope this helps, best wishes,