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

To: Jim Goodman who wrote (650)	5/28/1999 6:31:00 AM
From: Early Bird	Respond to of 660

Finally ! I am IN ! Just signed up for your newsletter, Jim, after e mailing you about such things over 18 months ago ! First thing I will do is go to post #40 on the Shorting and Education thread, as you recommend. Incidentally, that thread was started by myself years ago, in an effort to teach others, as well as myself. Hope I will be successful, will learn from you, and will be able to contribute here. TO ALL of our Success !!!! EB (Mike)

To: Jim Goodman who wrote (650)	5/28/1999 7:27:00 AM
From: Early Bird	Read Replies (4) \| Respond to of 660

Question: What is the BEST way to exploit a POST split stock via options ? After a stock splits, I have learned NOT to adjust my charts. WHY ? To compare it to the LAST time it split, AND to observe the typical behavioiral pattern. What I have noticed is that over 95% of the time, after a stock splits, it will go into a narrow trading range for the next 40 days. This is due to many factors, not the least of which is the time it takes for the brokerage houses to receive old stock certificates, and deliver new ones. Add to this the fact that many people use this time as an opportunity to SELL and take profits (selling 1/2 of the position so that they now own the rest for free) and many others want to get in on the stock at the new post split price. So, since this is fairly predictable, WHAT is the BEST way to take advantage of these situations ? Option straddles ? Am currently tracking 33 that have split this year. Any thoughts ? EB

To: Jim Goodman who wrote (650)	6/11/1999 6:24:00 PM
From: Jim Goodman	Read Replies (1) \| Respond to of 660

we continue to do well on the downside for you....I also established a thread of "puttables" on S.I., elsewhere if any of you want to check it out...we "took" more puts gains in my NL, as more stocks fell to initial downside targets, then rotated to new industry groups, etc. for recent decline....had some Q, S, looses as well, of little consequence.... the fact that I get so few posts here, was a decent bearish sign near the May top, yes ? best wishes to all,