Mish's Global Economic Trend Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mishedlo who wrote (258)	2/19/2004 4:18:05 PM
From: mishedlo	Read Replies (1) of 116555

If I say I shorted 15 puts for 10 points that is 151025 = $3750 in short puts. I collected 10 points for Sept 05 94.50's My loss point is 94.40 (interest rates at 5.25% or so) Now you can also get 150 points off a single future. Just buy one sep 05 at 97.10 and if we do not hike it will tend towards 98.80 or so (170 points). $4250 per contract. By 5 and if we do not hike pocket $20,000 The short puts are nice cause you can win even if they hike but you have to do a lot of them. The only safe way to do lots of them is to go WAY OTM. If the fed started agressively hiking I would be screwed. However, if the first hike is not until SEPT or DEC then I would be OK anyway due to decay and the impossibility of hiking 4 points in a single year. A nice combination of short puts and futures works nice. M

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next