Sort of OT for Edamo re: Options, Market and Dell
Edamo, in writing puts and "keeping it simple" what do you think of the following post from an options trader on the CMGI board--it was post 4816:
"In regards withj market, it's not that simple...A/D line is steadily deteirorating, new lows 152, in order to have positive market it should be 30 or better, VIX index, very low 29.4 which is typical for tops, in october when we mae bottom it was 60.6, amount of bulls 67.8 also typical for tops, put/call ratio very negatie so despite buying dips its just the matter of time before we will go to 9100-8700 DOW, Nasdaq comp 2000-1900, and OEX under 600, of course if Dell will deliver we may stetch it, but they need to beat 34c whisper handily and bring revenue above 5.5 bil and at conference confirm that they will continue to grow at 50% clip...It will be tough..."
First of all, is this kind of analysis meaningful? Do you use it? And does the whole market turn on Dell that way, and are they required to do exactly what she says? Also, what do you consider a down day for writing puts on something like Dell? Was the selloff Friday down enough or would you wait until further possible selloff today?
Thanx baseball coach!
Jilll |
