Broadcom (BRCM) 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.

Technology Stocks : Broadcom (BRCM)

BRCM 54.67

0.0%

Feb 9 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Walkingshadow who wrote (3987)	6/30/2000 2:21:27 AM
From: Brian Malloy	Read Replies (1) of 6531

The statement about options traders shall be losers ( I know it was not invented by you) is one of the largest fallicies floating around wall street. People that know what they are doing with options make outsized gains in my opinion. The research in this area is based on contracts being bought and held till expiration. This is something that few real options traders do. If you are working with options you must be disciplined. You set your parameters ahead of time, you know the window of opportunity and you execute. You make the greedy gains both up and down, lock in profits and adjust from there. As for the BRCM outlook, it was already in consolidation mode, it made several bottoms in the one-teen range. With the S&P news we are in a breakout phase while the rest of the SOX is kind of languishing. If the summer rally comes in force, BRCM can take out the old high in less than two weeks. Watch the market 5-8 July. If the NAZ gets a thrust some where in that time frame we will make it. If the market is not breaking out by the 8th then it is time to consider puts. Bottom line, the real options traders will be establishing fresh call positions Friday and into next week in anticipation of a surge (markets as a whole, individual stocks must be looked at for what they are). If the surge does not come they will close out those postions and hedge to the downside in all likelihood; they will not hold those calls for 14 days or so in a market with little probability of moving to the upside). In short, real options traders are dynamic, not the automatons that some would like to model them as. One of my commandments for options: If I don't think I can make triple digit gains on an options trade then I should not be making it.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next