Paul,
<Hank and Mike, are you guys still shorting and sell naked calls on PSFT???>
We sure are and added to the position yesterday! Ask meathead about the big "Doji" PSFT made the other day!
<Are you still shorting more DELL (I guess you are now showing a loss)? Frankly, shorting these high flyers makes sense to me only if you believe that an earnings disappointment is probable (very unlikely IMO) or if you believe the entire market is set up for a major fall ala Oct 27 et seq. (who knows what new disasters lie ahead?).>
Yes, we are still short DELL and have been adding to the position as of yesterday! And yes I see earnings disappointment and an other market correction ahead! As far as a loss, yesterday we were showing a small lose in our short, but the naked calls that we have been selling could have been covered yesterday for a profit! Remember the time value for Dec. is running out fast! Today is a totally different story, for we have profits in our short position now!
<I think your strategy is phenomenally risky.>
It is risky, but not as risky IMO as buying a lot of time value in calls that expire worthless! Also Paul, remember we are more than happy to go short any stock that we sell naked calls on! So why not pick up some premium if one is willing to short the stock anyway!
<By the way, in checking out your charting prognostications against my portfolio it sure doesn't look like your opinions bear (maybe I should say bull) any relationship to what's happened over the last couple of weeks. Care to ammend your opinions?>
No I do not want to ammend my opinion on the above! The only correction to my trading on your portfolio is that I would be selling PSFT short as to buying it now since it made a "Doji" on the daily chart the other day! Paul; you call my trading bull or what ever, but it is working for us and I have to admit it is not a set of rules set in concrete as some people believe rules should be! If I ever convince you of our trading ability, I would welcome you or whom ever to visit with us at anytime and spend a few days with us and let us show you how simple it can be to make money selling naked calls and selling short on 2 to 3 or 4 or 5 month time frames in the market!
Again good luck to you!
Hank |
