How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: NateC who wrote (10169)	3/30/1999 4:43:00 PM
From: Herm	Read Replies (1) of 14162

There are some conclusions one can draw by watching the up and down ticks during the course of the day. It does relate to the questions asked about MMs and the bid/ask game they play in order to make a market and pocket a profit. A floor trader told me when he buys a PUT he has to sell a CALL in order to extract his profit between the spread. Shorting Stock: You will often see a large amounts of small blocks of an uptick followed by large block(s) of down ticks. I call this chumming and raising the stock price and then hammering it down to make the short position profitable. Shorting against the box is most likely outcome desired. Stick Em Up! - Give Me All Your Shares! You will often see large amounts of small sell down tick blocks followed by large up buy block upticks. Selling large amounts of at the money PUTs only sweetens the pot for the MMs by collecting the premies to buy large blocks of stocks cheap. Magic Carpet Ride or Now You See It, Now You Don't! You will often see large volume and large uptick buy blocks only to fade later using large amounts of large down ticks sell blocks. Freak Out, I Got You Money! You will often see large volume and large down ticks sell blocks only to reverse on the dime later using large buy blocks and high large volume. Dead cat bounce or trader's bounce may be the more common name used. The combinations are endless and others out there may have some more ideas. Cramer talks about these tactics on his thestreet.com That is where I first learned about such inside info.

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