To all the bears who are spreading the bearish sentiments.. come I make you a grown up man and fearless trader.. the bull never dies and the horny bull like Ike rarely fails to deliver the final coup de grace..
I love to see some volatility, I perfectly see that the best bet considering market bearish sentiment would be to go long 1250 puts for Sept each put protects you for 250,000 $ and will cost you may be 15-16$ if you have a total core of 100,000$ (g)portfolio this one put is more than adequate for that big fall if it ever comes, however a turnaround will diminish the premium of that put but will increase the size of the core.
It is simple strategy but to come to market where you need to be invested all the time you can rarely run with huge cash positions you just don't get any returns. I am lot of cash but since I do options out of the money I have luxury of leverage, if it moves up I am happy as I have advantage of out of money cheap calls if it breaks by Sept I have these long 1250's and in betwen below 1297 I will play more on down side.
Everyone has a reason to play in day trading, I think people loose because these 'young blood jack ass traders' rarely tell the ivestors why don't you protect your underside with little insurance when market is right on top?
The markets are for people who trade leverage and use leverage to protect their core portfolios this is how Sorros became what he is, I try to emulate the hedge fund strategy in my account, in times like this play safe others go long few stocks and few options.
People who spread rumors of impending fall rarely trade with leverage, they would buy YHOO 1000 shares I would not I will use part of that money to buy 140 calls for oct may be 10 of them, this is leverage and a day trader should have atleast 5% to 10% of its portfolio in this kind of options you loose everything if Yhoo retraces, but at 90 one has the opportunity to buy some more 120 calls the chances of a bounce back is great and the loss is limited to the premium spent. If 1000 shares of Yhoo would cost 140000 $ and at 90 you loose 50000 on paper in a option trade you have 10 calls at 140 strike for oct which you paid 15,000 worth 5000 when the price hits 90 and you use another 15000 to purchase a lower strike at 120.. so the total outlay is 30,000 much less than 50,000 loss.. This is the kind of trading we do, in the interim if 1328 is broken and SPU option of 1300 is aquired you make some money on that too as you get out at 1310.. Now in trading like this rarely one cares for direction rather volatility is more important.
Most of these guys would disappear when the going goes other way and will rappear when bear market looks to be in offing. For me it is not about sensationalism or 'fire in the cinema', it has to be rational approach and if one does not have one to give! the strategies and fears compounded are bound to disappear in thin air like a stinking -hart. This is how I really take these rumour mogers, I have extracted enough of pounds of flesh 'dry and clean' and now skiny bears have not much left on them. After all not much is left of someone who has been shorting these stocks from 9$ AMAT from 18$ and INTC 30$. The fun starts when they start buying puts in middle of solid support and we sell them the puts and buy the calls from them. This is the story of thier life, markets have a lot of things going for it, one needs to keep a very clear mind and treat the markets every day with a fresh mind not fixed cemented approach.
I have my puts 1250 Sept they have nearly doubled from where i got them, but I am taking them to the finish line, in the due course I have traded 1340's 1330's and 1300's many a times. The market provides this opportunity every day. You got to have some money in the market one side or the other rather both side is the best and play these markets accordingly if markets go up my core comes in to play if they go down until Sept 1999 my puts are in play at 1250.
Now after I have taken care of my core and position trade that one fine morning I may not wake up to a 5000 point drop I am left with day trading and that you do without any bias every day as the marekt opens you take your bets and loose them or win them, I cannot spend too much time on worrying about my down side that has been well protected by 100 odd puts.. Most of these guys have no idea of derivitives or instruments or options until you don't trade S&P options and use them as part of your strategy with ease you will always be worried.
I can see it that amateurish child like fear towards fall stems from very small or little trading experience, unfortunately trading is an art you learnt it over period of time.. if interconnectivity of Ike is substantiated by actual money on line.. no posters would stay on SI consistently unless his or her money is on line.. these cowboys who change their name and alises like my sister changes her kids diapers have nothing but fear to offer, from being bear to bull their direction get skewed!gg
They and their cohorts will be slaughtered like lambs being led to sluaghter houses NDX 2000 or 1980 very much possible but beofre that will be 100 trades and we will all show them live but to harp on fear this is childish and needs a little pamper assisted growing up .. Ike is ready ot teach them all they run away from me and get on to abuse me, after all, these kids on the block need my affection// I again tell the bears of SI come I change your pampers and remove your fears and teach you how grown ups trade.. poor guys I feel sorry for them.. let them make this big fuss they will get a small 'bhumboree' and a big 'bhumboo'.. bhumboree is reverse for short trades and bhumbo I am sending it down... reading this will et them dance on their little tails but I want to remind them Ike wants his pound of flesh and that too exact and you all know 'I cut it clean dry and easy',,.. Ike is not clumsy likr Sherlock.. Ike is coming bears... beware.. |
