Joey; RE:" Year over Year, INTC then = INTC now "
...yeah, I read that on the 'normal people' {grin} Intel Threadz, Joey. Thing is, IT prolly bought an' sold INTCW mebbe 100 times or more over the last year - dunno why he likes to hold it when it goes down {grin} ( he's just funny that way ;-) So year-to-year gains are kinda meaningless to a trader.
You know, fellow named 'Tom Trader' (on the Tech Stock Options thread - he's an SPZ Futures trader) was talkin' with lady named Judy ( one heluva tradin' lady, if I do say so; weakness for Merlot ;-) 'bout averaging down with LEAPs in a progressive fashion.
One of my favourite trading tactics - in a bull market - is to "buy down", like for example, 1x72/2x71/3x70/4x69 = 10x70 AVG when stocks make Hammer Candlesticks at trading support levels or during dips. I play larger swings than IT does, generally - and hold longer.
Tom was talking about (1) buying a protective PUT; then (2) progressive accumulation of LEAPs to establish an investment position. Janko pointed out to me (in an E*MAIL) that buying LEAPs when prices are falling generally SUX because the implied volatility raises the premiums. McMillan's book - THE reference, I guess - says that the optimum time to buy LEAPs is when both interest rates and volatilities are low.
Anyhow; Interesting accumulation tactic. He and Judy were looking at INTC going WAY down from this critical 68-70 perceived support level, with BIG spreads in the buy-points (not like a trading tactic, with small spreads between limit orders as in my example).
Tech Wreck of '97 - "you were there", DUDES !!!
-Steve |
