Allan,
"Have you ever considered buying calls on cats. Might increase reward risk ratio? they might be real cheap on the morning after it signals."
I haven't, if only because most of the cats I've played don't have options. The ones I'd be interested in studying, however, are the kind of high-cap, honorary/quasi-cats I mentioned a few posts back: Where a CNC or MSFT or BGEN percolates down for three to four days after the gap, then gives a high-risk, hyper-early signal: new low on higher volume, with a bounce toward the close. I don't follow derivatives closely, but I have seen they don't necessarily follow the underlying issue proportionately, as they're so frequently being used as hedges for the opposite position.
Definitely something to keep an eye on, though: Let's track the price of INTC Octobers, Novembers, and Decembers, for example, should the stock price percolate down for the next few days, like a niceuns little pusskins. If that one don't happen, I have a feeling this earnings season'll bring a few other star-quality felines to vivisect.
Ivan
PS: What do you think of starting a Welcome to the Cathouse PussyCat Fund: $10K of virtual money you and I can play cats with? Intraday? Natch. On margin? Of course. And calls? Fork yes. Fork yes. |
