Tuck,
I too have found puts as a sideshow with these low volume CC plays to be a loser, regardless of greeks, et al. I do like the puts, however, as insurance during a reporting period. In those circumstances, I just try to protect my nut, with OTM puts, at real cheap prices. Then if the stock really craters, things will hopefully balance out to a net positive, or at least no large loss.
I do like puts on the big, fast movers, however. Even though they don't change as quickly as the calls, stocks seem to like to drop faster and harder on a day like today, than on a positive day. Sure wish I had puts on CSCO and ATHM, instead of calls. Sigh.
Also, Herm, I did look at the weekly's for both indexes. Other than RSI, which looks high, I don't see anything but pretty solid uptrends in either index. Both are floating along the upper BB, with diverging patterns, MACD is still trending up, stochastics have not crossed over on a down trend. From a TA perspective, there is nothing major that I see that would have foretold today's decline. Instead, I think we have some other influences, like balance of trade, dollar issues, and summer doldrums. Or, maybe the price of cocaine shot up, and all those Wall Street traders are having a bad hair day. Anyway, please educate me as to what you see, or if there are other indicators that you are looking at. Thanks.
Dave |
