To all,
If anyone saw my earlier note on the 3 part sequence, I have thought of a fairly safe strategy, but I need help since I really do not follow alot of stocks.
If anyone referred to my post I wrote on SAT, Post 5344. technically the overall market should react in a 3 part sequence for the short term. The first part to start today was that overall market down with some divergence whereby some indexes will either be flat or up. Part 2 would be flatness or up, and Part 3 down, and Part 3 will be highly effected by the forthcoming economic news this week.
Here's the strategy - go for a "STRANGLE". Buy a call today, wait for part 2 of the sequence and get a put.
Part 2 of the sequence, could happen as soon as this afternoon.
Can anyone help me with a stock that would fit this strategy - I am already looking at MSFT. We will need one that has volitility, so I am not sure that IBM would work, but that also depends on the option price. If anyone interested in helping, please post the prices of the PUTS and CALLS and the current stock pricel
As for today's timing - I feel that the optimal time would be around 1-2:30 pm today to get the call. As already indicated, there may be some buying late this afternoon/tomorrow (not alot, but should be off the bottom) whereby it may be the right time to get the PUT, or just wait for tomorrow.
Hope someone is interested in this play, I just need a stock.
Seeya |
