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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Uncle Frank who wrote (23596)4/26/2000 9:16:00 PM
From: Brian Malloy   of 54805
 
Actually, I will have to agree with Jill. In fact volatile markets like this are the safest time to utilize options.

However, it is possible to simplify. No need for options on individual stocks at a time like this, it is much harder to manage and individual stock risk does make it more dangerous. Much less risk is involved with options on indexes such as the NAZ or QQQ. They are easy to trade quickly, you don't have to worry about sudden individual stock or sector crazyness. The returns available are better. It may seem counterintuitive, but the volatility protects you.

When in doubt, simply step away or put on a straddle. In all honestly, over the past two weeks on a daily basis returns of 40 to around 120% are the norm.
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