CNBC - Cramer's Mad Money

Discussion in 'Wall St. News' started by LaSalle, Mar 14, 2005.

  1. thanks again for the reply
    do you ever short or do any option trading

    ie mrvl option trade...if you believed it will have a pull back..

    one could write august call 45@1.10, 42.5@2.35, 40@4.20...
    worst scenario you end up with 3k short approx42.00 but have received 7500..
    if this had be done earlier today would of been worth over 8k with the probably of the 45 expiring and you receiving the 2k short @ 41ish....
     
    #501     Jul 28, 2005
  2. KevinK

    KevinK Guest

    Yes I do play with options. I would tend to play a spread if I was writing options to cap my risk.
     
    #502     Jul 28, 2005
  3. tend to agree with you risk management very important it is something I have neglected occassionally and paid dearly for it.

    I usually buy calls/puts out of the money to protect myself
    that is also one of the reasons I write the option I try if possible to use opm to help ensure a positive trade
     
    #503     Jul 28, 2005
  4. KevinK

    KevinK Guest

    JMIH is a penny stock I own, Lots of revenue, EBDITA and cash flow positive. Longer term I think it will go to .40 per share. Note: I am unlike many penny stock investors in that I don't usually go for 1,000 times my money. I ten to target smaller, more practical gains.
     
    #504     Jul 28, 2005
  5. that is how I have played mivt over the last 4/5 months

    picked up the stock in the low 40's and several times 50cent area exited the trade approx 20cents ....am waiting/hoping it will come back into 50's
     
    #505     Jul 28, 2005
  6. KevinK

    KevinK Guest

    I don't like playing companies that I find hard to research and I do not average down on penny stocks unless it is minor a minor correction. I do not consider JMIH a penny stock because although it is cheap, the insiders own a ton of stock, and margins are good unlike many penny stocks.
     
    #506     Jul 28, 2005
  7. JMIH - here's hoping its a google for you, has been in a very tight channel 30cents for 4/5 years

    is this the first time you traded the stock. how did you hear about it?
     
    #507     Jul 28, 2005
  8. KevinK

    KevinK Guest

    I have been long the stock for a few days. I don't 'hear' about stocks of this type. I find that when someone tries to tell me their holdings they are trying to get out of a position and I try to find companies with the best fundamentals. I do this through using a stock screener and looking for various fundamental criteria. I don't consider technicals on such thinly traded, low market cap stocks such as this one. The fundamentals are solid and I think there could be a takeover.
    Not to say I do not consider technicals, that's all I consider when I trade, but on this stock it's an investment.
     
    #508     Jul 28, 2005
  9. Kevin, which stock screener do you use or like the best?

    if you don't mind, what success rate have you had using the screener. roughly if you decide to answer as I know this is a personal question and really none of my business.
     
    #509     Jul 28, 2005
  10. Cramer's bag is generally trading and not investing per se. He mostly does short term sector rotation of a few months. Yes, always do your own due diligance.
     
    #510     Jul 28, 2005