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Strategies & Market Trends : Options-Technical analysis

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To: wiley murray who wrote (252)2/20/1999 6:24:00 PM
From: Caroline  Read Replies (1) of 296
 
Hi wiley,

I don't trade short term options that much any more (or long term...) ... because it's too much of a pain.

It's just not worth it if you can't keep both eyes on the market.

When I did trade, I'd look for undervalued options and buy them, or overvalued options and sell them.

When DELL hit the blow off top recently at 110, I was pricing calls to sell against it. It broke the uptrend. But DELL can do that and go higher than 110, so I didn't sell.

When it dropped $20, I bought the DELL Mar 110, and DELL dropped another 10 points.

You know the saying: can't win for losing!

As for TA, I'm fond of the Befriend the Trend thread. Look for trends, look for deviations from the trend and bet according to the direction the trend needs to resume.

If a stock gets too high off it's trend, bet against it; if a stock gets too low off its trend, buy it.

CB
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