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Technology Stocks : Stock Swap

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To: pz who wrote (11807)2/11/1998 9:33:00 AM
From: Patrick Slevin  Read Replies (1) of 17305
 
Futures is what I mostly trade.

I pick up a stock here and there when I'm bored but generally I try to make one or two futures trades a day.

I am always out by the close so I'm not subject to overnight motion. I suppose I could offset such motion with an opposing futures option.

Although perceived as risky, the S&P future is the most liquid contract one can trade. That is to say, if you have set stops to remove yourself from the position then (intraday) you "should" not have a problem.

As I recall, several went bankrupt in 1987 because the name of the game was "up" and shorting puts was "money-in-the-bank" until that funky thing that happened in October of that year.

So yes it can be risky but generally only in the most unusual of events.
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