Art, thanks for the insight to shorting. actually i use options very frequently, so, i'm pretty well versed in the subject. the times i don't like options, are when the premiums get a bit whacky. although, with volatility comes opportunity.
i have played options on BRCM, CSCO, MU, AFCI, CHRZ, IOM, IBM, EK, SNDK, SEPR, ATHM, TERN, MRK, CNTO, PAIR, UIS, FRO, HON, QWST, AMZN, YHOO, PFFB, and there have been others. i have been short, long, short-against-the-box, naked calls, naked puts, straddles, hedges and long calls or puts, depending on a variety of speculations which i believe might pan out.
"But consider shorting ONLY when there is a pattern of insider selling"
unfortunately, this doesn't always work as a signal to short. i have experience having shorted AOL and taken a couple thousand in loses because Case, Pittman or others were selling. chambers sells too, but, try shorting cisco.
i lost money on a naked call on yahoo! talk about a lesson in finance. basically, the key from my viewpoint is to be able to take a loss and move on.
what we are really talking about is speculation - which is akin to playing blackjack in vegas, without true insider info - something i do not have and will not trade with if i ever get.
best, keith |
