RE: [CANSLIM] Options

From: "Dempsey, Chris" <Chris.Dempsey@ReedHycalog.com>
Subject: RE: [CANSLIM] Options
Date: Sun, 25 May 2003 16:08:08 -0500

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I would not recommend using options until you are very good at CANSLIM.

- -----Original Message-----
From: Chris Jones [mailto:SwingKid104@attbi.com]
Sent: Sunday, May 25, 2003 3:44 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Options

I've been wondering about the same thing.  In most stocks with a sound =
CwH,
they'll often go up $5 or so within only a few days of breakout (in my
limited experience).  In many cases trading options (not to limit =
losses,
but to speculate) would produce a 50-100% return with only a $5 increase =
in
the stock price.  That seems very tempting to me, until I remember that =
if
the breakout fails and the stock falls below your strike price, you're
instantly out nearly 100%.  Risk and return, but it sure sounds =
tempting.
Has anyone tried doing this with CANSLIM stocks breaking out of CwH =
bases?

IMO, using stops at 8% would prevent you from really needing to use =
options
to protect yourself, and they cut into your profits if you're right.  Of
course, I've never even used an option yet, so take that for what it's
worth.

Chris

- ----- Original Message -----=20
From: "david rossing" <pimpdaddycueball@yahoo.com>
To: <canslim@lists.xmission.com>
Sent: Saturday, May 24, 2003 8:26 AM
Subject: [CANSLIM] Options

> I was wondering, does anyone here use options when they are doing
> CANSLIM?  I don't know a lot about options, so I am trying to figure
> out if they are useful here, and could help set stop loss limits,
> though not necessarily at an 8% price drop.  Thanks
>
> Dave

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