<<Hi, mish: I really appreciate your posts...
We didn't have long to wait for the CSCO erosion, did we? Puts I bot Friday already up nicely, of course.
What are you looking at on C puts? Strikes, etc.
Phew. I managed to get QQQ puts 'on a dip' <g> ... starting to feel extremely vulnerable without Jans on it.
This is like kid-in-a-candy-store shopping, isn't it?
JNPR, BRCD, BRCM, RIMM ... I've started looking at the sample portfolio that heads this site to see what's green as a possible short opp. <sorry, Greg!>
You guys are good ... congrats on your SAW and all of your morning plays, mishedlo..>>
==========================================================
As for Jan QQQ puts - Be Careful!
In fact be careful of Jan tech puts in general.
We have had quite a few bad days in a row.
A rally could be due anytime.
If Greenspan does lower rates tomorrow, Jan PUTs may go down the sewer!
I wish I locked in some of my BRCD puts at the bottom, even though it would have been a loss. However, they are April PUTs. Plenty of time to recover.
As for stuff Like RIMM, it is so overpriced IMHO that I am willing to buy puts on any spike towards a resistance point. Resistance seems to be at 90 support at 78.
If they bring that back up to 90 I will buy more Puts. At 100 I will add more. Support below 78 is 64 or so. So I want that support at 78 to crack.
I sold My C puts on Friday because the Dow was down 400 or so points in two days. I thought a correction was due.
Bought them back today at a small but worthwhile discount.
As for timeframes.
I prefer a few months out in general as you have longer to be correct. On a huge totally unsupported rise, shorter term Puts seem reasonable.
So I am buying March thu June puts depending on the company. The C puts are reasonably priced so I bought right at the money strike 50's. On a more volitale issue, with that long a duration, the time premium is far too expensive.
On RIMM, when it was at 89 I bought the March strike 80's.
In general I would prefer shorting to options. However, you can not short in an IRA.
On options take your profits early. If you buy 10, and can manage a double, maybe sell half and let the rest ride. I took half my profits on HGSI from Fri and all on the RIMM I bought today. It was a good move. RIMM rose 4 points after my sell. 25% gain in 1/2 hour, I will take it (again especially as we have had so many bad days in a row). On the first down day, hell maybe let it ride.
In general, after 3 BIG down days, look to close much of your PUT position out. Perhaps even if you have some losses.
Watch those QQQ's closely.
When does Greenspan report?
M |
