SI
SI
discoversearch

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.
Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: DanZ who wrote (4568)10/7/1998 8:30:00 PM
From: ron delany  Read Replies (2) of 6565
 
dan and linda,

I'm not claiming omnisience? here but I'll try to answer your question. But first I'd say to Dan that your method of selling quickly just below the market and presumably taking profits just above protects you from any huge loss and amounts to a defacto hedge. I mean 7 is strong support for the moment and a move to 8 (+15%) or so is likely. Selling at 6 5/8. Good risk/reward. No problem. But to be long the underlying plus short itm puts and not to trade with stop loss market orders (I'm assuming Linda doesn't trade this way) I mean that's way out on the limb as I'm sure you'd agree. That stock better go up. Having said that my reasons for thinking it might go down are: the 5 day ema is below the 8 day ema and both are below the 34 day which usuallly happens just before and during a downleg. Also the adx line of the dmi is at 33 up from 27 (not too high not too low and heading up) and the money flow is down (when the price is sideways) Also there‘s some weakness in the volume accumulation line (Chaikin's ) which indicates the big boys are selling/shorting. Plus the intermediate term pattern looks like a descending triangle which is almost always resolved downwards. On the positive side the 5 day rsi is bullishly diverging
but that's a very short term trading indicator (it also happened just before that little move to 8 3/4 recently.) and means little or nothing to the buy and holders. Admittedly these aren't overwhelmingly bearish indicators and I'm not taking a position either way based on them until it becomes more clear. Still if I had to guess I'd say down. Line of least resistance and all. And position wise if I were long, I'd either hedge my long position or sell out at some automatic point just below 7 or both. All this is just my opinion of course.

Linda: you can hedge your position either by selling enough calls to compensate for both the long stock and short puts (delta neutral) or by buying enough puts to do that. The decision depends if you think it's going down (buy puts) or sideways (sell calls). Obviously if you think it's going up then you're already well positioned for that.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News