[at-l] 800 dollar thru hike

[rcli4 at comcast.net]

I don't bet to win and lose at the same time.  No balls no blue chips :>))

Clyde

-------------- Original message -------------- 
From: Tom McGinnis <sloetoe at yahoo.com> 

> Thee Clyde: 
> November calls on Ford for $3 are going for 35¢ per Friday close. If you sold 
> calls on your Ford stock, and on the third week of November, Ford was at $2.99, 
> you keep your stock, AND you're ahead the 35 centavos. If Ford is $3.01 or 
> better, your stock is sold at $3.00 (a considerable profit to you) AND you're 
> ahead the 35 centavos. If FORD plunges to $1.10, well hell, at least you cut the 
> losses by, guess how much, that's right, 35 centavos. You can even get *in* on 
> the stock at a discount, by selling put a put contract (November Ford puts are 
> selling for $1.00 -- that's just phreakin' phat.) 
> 
> If you repeat the steps above, raising up your call target as your expectations 
> grow, you can subtract anywheres from 15¢ to 75¢ per month from your cost basis 
> in Ford, taking it from the initial $1.88 to perhaps zero. And yes, this speeds 
> your re-entry to hikerdom. 
> 
> Roughly a year ago, I jumped on AMD in a similar way, at a basis of $8; it is 
> now at $4.21. Yes, I am sad. Howsomeever, not as sad as I might be. I sold calls 
> on for 9¢, 75¢, 43¢, $1.07, and 75¢, so my basis is down to $4.91. If AMD pops 
> to $7-$10 (as I think it can -- it just reported quarterly results, with a paper 
> loss, but earnings of 11¢ on ordinary activity), I will be a happy boy. As it 
> is, with the stock down almost 50%, I'm down ~10%. 
> 
> If you're going to buy-n-hold a stock, sell some calls on it; hike sooner. 
> Options give you.... options. 
> 
> tradertoe 
> 
> --- On Fri, 10/17/08, rcli4 at comcast.net wrote: 
> 
> > Close today... 
> > 
> > 425 X 2.43 = 1032.75 4200-1032.75 = 3167.25 to go 
> > 
> > Clyde 
> > -------------- Original message -------------- 
> > From: rcli4 at comcast.net 
> > 
> > On Oct 10, 2008 in the amidst of the chaos on wall street I 
> > was thinking. I took 800 dollars and bought 425 shares of 
> > ford. 425 X 1.88 = 799.00 Scottrade will charge me 7 bucks 
> > so really I have 806.00 in my stock. According to my 
> > crystal ball, in the next 12 months the stock will climb 
> > back to normal prices. When it reaches 9.88, Wahlah!!!! I 
> > will have $4,200.00 for a thru hike. Stand by for updates. 
> > 
> > Clyde 
> > PS I know Felix it only cost me a round trip ticket to 
> > Maine and 3 days food for my hikes, but you get my 
> > point._______________________________________________ 
> > at-l mailing list 
> > at-l at backcountry.net 
> > http://mailman.backcountry.net/mailman/listinfo/at-l 
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