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Technology Stocks : Allaire
ALLR 1.155+4.1%Nov 7 9:30 AM EST

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To: HG who wrote (353)9/20/2000 7:19:24 PM
From: 10K a day  Read Replies (3) of 612
 
when you buy a call.
it's short term money.
a short term bet.
and the market maker taking the other side of the bet is immediately short the stock ,,,on a short term basis,,,
by default.
they are short.
so they just tend to increase the short as you increase your leverage on the long side.
(depreciation time premium - tick, tick, tick, the clock is ticking )
(or not participate with you on a rally)
the more pressure you apply.
the more pressure they apply if they don't want it to go up.
of course.
name of the game is hedge hedge hedge.
if you must go long calls.
in my opinion.
you must hedge by selling a calender spread or
a bull spread or selling a naked put.
you may win several months in a row.
and you may do fine.
and if the market makers target you.
they will take it back all at once when you are feeling most invicible....
it's money in the bank if they do nothing.
don't participate in a rally?
hell they'll hold the rally down!
kill it!
destroy it!
short it more if they want.
this whole game is not based on supply and demand.
that is the greatest myth of this stock market.
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