L.L.P.G.... If you think this stock is over valued and SELL; why do you need to buy 2007 JAN 40 PUT ? That is over year ! By that time COH won't be over valued with more earnings. Something do not add up You either do not understand option strategy or BSing
I like buying time and will not hold until 2007 Jan. I just play it safe and will sell when the time presents itself. retail will correct.
I am not BSing, you need to learn about options. I straddle as well, calls and puts.
I have made a small fortune trading with options. I take 30-50% of my profits and go long as well. I trade with money flow. I look at sectors that are experiencing inflows/outflows and hedge accordingly. I manage a family trust that has grown from 200,000 in 1987 (Started after the crash) to over 20 million today. Not bad for a self taught ex-wall streeter.