Canadian Options Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Canadian Options

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jan Johnstone who wrote (722)	10/27/1997 8:57:00 PM
From: Dave.S	of 1598

Jan: The purchase of a straddle on MLT sounds OK because the premiums and volatility are still low and MLT is still a slow mover so one can easily cover your positions. The trouble with TXO, OEX, and the DJIA is the very high cost of the straddle and one has to be very nimble to take profits. If one currently doesn't have any positions on, I would recommend sitting back until the dust settles. These are dangerous markets. Even though I had a nice position coming into today I found it exhausting and stressful watching the drop. None of the Pro's want to see a market crash - even those that are heavily short. After the 1987 crash the clients went away for 6 years and the years from 1988 to 1994 were very difficult ones for the MM's and the industry. This kind of market doesn't do anyone any good. I also completely hedged my MLT position this morning - I had no choice! Dave

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next