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Technology Stocks : Intel Corporation (INTC)
INTC 39.38+6.7%Jan 2 9:30 AM EST

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To: Amy J who wrote (137475)6/16/2001 11:51:31 AM
From: tcmay  Read Replies (1) of 186894
 
Do filters work on stock movements?

Amy wrote:

"Message #137475 from Amy J at Jun 16, 2001 3:06 AM
Hi Tim, RE: "it won't seem like such a good deal, will it?"

"Why not a strike that allows for at least a 10% growth before being called away, on a portion of portfolio? That portion can move a portfolio. If the portion is called, it's 10% growth (which isn't too good), but if it's not called away, the premium is kept and plowed into more INTC shares (which is good). The game is won if INTC recovers, which is certainly a bet I'm willing to take. "

Pardon me for being blunt, but these schemes are all part of the fallacy of thinking filters can make money in a mechanistic way.

I'd advise programming some simple Monte Carlo-style simulations to see what happens.

--Tim May
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