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Strategies & Market Trends : Classic TA Workplace
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To: John Madarasz who wrote (53130)9/12/2002 5:26:59 PM
From: Johnny_Blaze_420  Read Replies (1) of 209892
 
thx john,

recently I've found that the patterns move in good sized swings up and down and without relentness moves in either direction unless you want to call the move from 83 to 8800 relentless.

So, having said that. The best strategy I've seen is to buy the closest calls/puts to the strike price. So today we closed at 8375 and 47.2 (dow and msft respectfully) so i bought dow 8400 and msft 47.5 calls for october. Sept is too risky for my blood at this point and it's only 10% of the portfolio so the risk is negligble at this point too.

even a small move, ie 75 dow pts and 50 msft cents will give me a 10% move in the options from the prices I got. And i think both of those are readily doable within the next 5 days let alone the next 5 weeks.

Agree on retail. But i'm more interested in looking at the banks, cc's and housing sector for shorts. Especially the RE mkt as when that one turns, if we haven't had improvement in the jobs numbers then things could get ugly across the board.

I don't discount the mkt being held up into oct/nov for elections so this next down leg may be minimal, ie not piercing the july lows. but that should only forestall the true leg down which unfortunatly will come down the chimney with santa claus.
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