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Strategies & Market Trends : Tech Stock Options

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To: Brad Hill who wrote (27852)11/5/1997 1:14:00 PM
From: Kevin  Read Replies (1) of 58727
 
>>>I notice your numbers don't have much range today--due to lack of volatility yesterday. Does the relative range factor have any bearing on the size of your positions or the way you play them? Or do you just follow the system exactly the same?<<<

Brad, so far I've stayed pretty steady on the size of my position...a few have been larger than the 'average position', but most have been similar in size.

What you've pointed out is an important factor that I will consider after more experience with this tool. In one way, you may think that it's better to take a smaller position when the points are in a tighter range. You might do this because you fear that there's too many supports or resistances to break in order to get a strong move to profit off of. But on the other hand, you may take a larger position to make it a hit and run (a 5 point move in the SPX should generate approx a 10% move in close-to-the money options which isn't bad for a quickie).

Just a few random thoughts.

Good luck with your deadlines.
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