Thursday, Nov 19 1998 10:54AM ET
Hello Ike,
Instead of using ndx.x @ 1485 to initiate puts on ibm & index, I used your sp8z 1155 level (from the 'pits' on Tue after rate cut). As you said before, this rally will be better off if the market retraces back to the sp8z 1128 level before going back up. (MM make more money to take this market higher <ggg>) We may retest 1155+ again later today but I would expect a more serious pull back near the close to give the overseas market a 'bad feeling'. The overseas markets should then pull back and that will help towards a gap down open tomorrow in DOW, etc... We sell off most of FRI, puts premiums are higher and we feed off the Big Boys scraps <ggg>.
If my hypothesis is completely invalid and we close tomorrow at all time highs then our long positions will be sitting pretty. I would love to see the Big Money Institutions pay big time on all the calls they wrote. Any increase in an equity and index will be transmitted to ALL the strike prices below.
Most voodo chartist are on bullish signals, candles, weegee boards, astro whatever... perfect setting for this short but sweet bhumbo <ggg>. If I'm wrong, I'm wrong. The cost of the bet is small compare to the potential gain. I'll trade my puts on bounces during the morning and keep them in the afternoon.
Let's see how the Boys script this expiration close.
Regards,
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