Comments on: “The Gibraltar Strategy: A Better Way to Generate Extra Income” — Karim Rahemtulla

By: Jim from Terrell

Jim from Terrell — Tue, 18 Nov 2008 14:10:25 +0000

Travis, I’ve been getting email from ‘bestdamnpennystocks.com’….. who are these people? There is never a name included in their little sessions. I suspect they are somewhere between not knowing what they are talking about and hoping a large influx of buyers will push up one these beauties so they can take a quick, small profit. I’m learning something new everyday.

By: Advantedge

Advantedge — Tue, 18 Nov 2008 06:36:02 +0000

Marco (and others who are looking at the strategy to “sell puts.”)… I would suggest performing this strategy “on paper” (e.g. without using funds from your account) prior to initiating a trade.
This will not only allow for time to spot that “bottom” that you are searching for — it will give you practice in the “art” of put selling. As someone who has used this strategy in the past, the learning curve is fairly steep when a stock blows through your put price to a level below that you never thought was possible. At that point, you might want to pick up some additional shares! Some of the newsletters that touted financial shares may have suggested selling a put on Citigroup @ $15 or more a share a few months back. Few would believe that the stock would now be less than 9 dollars in November, just in time for option expiration this week!
The high alpha names that you are considering might offer some juicy premiums for put options. Take a look at what the market did to BIDU today before you get too excited about selling a put on AAPL,POT or RIMM. I have to admit, since the news media suggested that Obama is a Blackberry user, I thought that RIMM might be a good candidate to sell an out of the money put. What strike price were you looking for? Somewhere between 20 and 30!
Good Luck! Let us know!

By: Simon

Simon — Tue, 18 Nov 2008 05:22:49 +0000

Not quite as seductive as “dark equities”, but peaks your interest none the less. This guy reminds me of a used car salesman! lol

By: Al

Al — Tue, 18 Nov 2008 04:24:04 +0000

Marco, please let us all know when you have seen an indication that we have hit bottom. Thanks

By: StockGumshoe

StockGumshoe — Tue, 18 Nov 2008 02:58:14 +0000

I dunno. There are thousands and thousands of OTC-listed potential shell companies that could possibly be used for a reverse merger, I suppose some of them are marketing themselves as such so you could try to find them, but with lots of really successful, growing companies available at great prices I’d hesitate to go out of my way to look for a company that is small or weak enough that it prefers not to go through the rigors of an IPO process. There are always a few stories of glorious returns that come out of these kinds of companies, but most of them, reverse merger or no, probably disappear into the mist.