HOW DO I USE THE ODDS PROVIDED IN YOUR REPORT?

This table is from our report on Morgan Stanley.

 

DATE	30%	35%	40%	45%	50%	55%	60%	65%	70%	75%	80%	85%
6/1/2009	$13.43	$14.45	$15.37	$18.25	$19.95	$20.97	$22.45	$23.77	$25.36	$26.47	$28.60	$32.57

The table is saying that there is a 45% probability that the stock price of Morgan Stanley will be less than $18.25. Conversely, the table is also saying there is a 55% chance that the stock will be trading above $20.97.

How can you use this information?

1. If you are buying today (March 3, 2009) the price is $18. That means you should be able to sell your stock at a profit in June 55% of the time.

2. If you are buying options for Morgan Stanley you can use the odds to see how often your position is profitable.

3. If you work at Morgan Stanley and you have options or you need to hedge your investment you can use the odds to figure out the best course of action for you.

4. Many people think a stock will come back after it has dropped. The table gives you the chances that this is a good strategy or not.

5. Check the recommendations your analyst or service is giving you.

WE PROVIDE YOU WITH INFORMATION TO MAKE SMARTER DECISIONS