Wednesday, December 3, 2008

Another Dow crash

Another major crash for the Dow and Nasdaq early this week. This is certainly a buying opportunity.

Amazon is a good company that has been severely beaten down. Selling puts at 25% below.

Plan:
If option stays OOM (price > 30) - let it expire.
If option goes ITM (price = 30) - either roll down, or if that's too expensive, let it get exercised and add limit-sell-order for sale of stock.

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