Jeff,
Welcome to the group, you sure will learn a lot here.
First off, the world is not yet ending, there is hope for this position. I assume that you do not want to cut losses short by selling and a repair strategy is what you are asking for.
MEE appears to be in a down trend for now and that .06 dividend will not help a lot to cushion the fall. I would consider selling calls to lower my cost basis. ATM, (AT The Money) calls have the most time value but you may sell calls deeper ITM (In The Money) and have more downside protection. If you decide to purchase PUT protection consider going out in time, perhaps LEAP PUTs to minimize time value erosion, that way you will recover some money when MEE starts to run again
When / if the economy gets back on track, coal will be part of the "big picture" and you will be able to sell OTM (Out of The Money) as the stock recovers. With many technologies depending on coal as a feed stock, today's trend may well be just a bump in the road. Take a look at what SASOL(http://www.sasol.com/sasol_internet/frontend/navigation.jsp?navid=1 &rootid=1) is doing to improve WW2 technology and produce clean fuels from coal.
Regards and great trading,
Jack W
From: "devdanbrit@yahoo.com" <devdanbrit@yahoo.com>
To: ConservativeOptionStrategies@yahoogroups.com
Sent: Thu, July 1, 2010 1:14:29 AM
Subject: [ConservativeOptionStrategies] FSYS need advise?
Welcome to the group, you sure will learn a lot here.
First off, the world is not yet ending, there is hope for this position. I assume that you do not want to cut losses short by selling and a repair strategy is what you are asking for.
MEE appears to be in a down trend for now and that .06 dividend will not help a lot to cushion the fall. I would consider selling calls to lower my cost basis. ATM, (AT The Money) calls have the most time value but you may sell calls deeper ITM (In The Money) and have more downside protection. If you decide to purchase PUT protection consider going out in time, perhaps LEAP PUTs to minimize time value erosion, that way you will recover some money when MEE starts to run again
When / if the economy gets back on track, coal will be part of the "big picture" and you will be able to sell OTM (Out of The Money) as the stock recovers. With many technologies depending on coal as a feed stock, today's trend may well be just a bump in the road. Take a look at what SASOL(http://www.sasol.
Regards and great trading,
Jack W
From: "devdanbrit@
To: ConservativeOptionS
Sent: Thu, July 1, 2010 1:14:29 AM
Subject: [ConservativeOption
New to board and really happy to be here. I think this market may have shown its bear claws
I have 1000 shares of MEE bought at 42 and now its at 27.50 no current calls or puts
What on earth can I do now?? I'm really in a jam
Thanks in advance
Jeff
Sent from my Verizon Wireless BlackBerry
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