Choice 1: Wait until the stock gets back to $40. May take Years!!
Choice 2: Throw in another $18,000 to buy 20,000 more shares. Your average is $2.76/share.
What if you do not have the $18,000 or the stock drops further to $0.50 after you buy? Better than 1 but Not a good choice
Best choice: Without spending any of your own cash sell someone the option to sell you 20,000 shares of Lucent at $2.50 within 2 years. You will receive $40,000 immediately . you will get to keep the cash if the stock reaches $2.50 at any time in 2 years. You will not lose any cash even if the stock drops to $0.50.
If the stock has bottomed, (A simple test in the book will show you how) you could use part of the cash ($18,000) to buy 20,000 shares of Lucent and have $22,000 cash left.
On 11/29/2002 LU closed at $1.76 and the option you sold for $2.00 are now at $1.40 . You could buy the option back for a profit of $0.60/share or $12,000 total profit and sell the 20,000 shares you just purchased for $0.80/share profit or $16,000 total profit. You have now recovered $28,000 of your $39,100
In fact this is just one of the techniques described in this book that will help you recover your losses while generating cash. --This text refers to an out of print or unavailable edition of this title.
This book contains a large number of ideas that can deliver big profits while at the same time being different from run of the mill option books. Read morePublished 1 month ago by Richard Cromwell
To benefit from this book one must learn how to combine technical analysis with option instruments. Mastering this will allow you to identify super profitable trades as I did. Read morePublished 2 months ago by Daryl Jefferson
I am a leader of a trade group in the Miami area containing members with varied trading experiences. Read morePublished 3 months ago by Stewart Cantrell
I was able to achieve average returns of near ten percent per month since I started using strategies in this book a couple of years ago. Read morePublished 4 months ago by Braeden Underwood
I just finished reading it for the first time, it's great book, I'm trading options for many years and still found many new approaches here.
It's a not a begginers book. Read more
I ran across this book while reading a recent Seeking Alpha article discussing in detail one of the techniques used. Read morePublished 4 months ago by Adrian Robertson
I'm a bit confused about this review. The book actually contains import information about Trading options. Read morePublished 4 months ago by Hans-Henrik Nielsen
Dr. Elias writes the best books I've read for understanding markets and trading. They are a bit old and needed better editing, but those criticisms are small compared to the value... Read morePublished 5 months ago by D. Bissett