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Strategies & Market Trends : Waiting for the big Kahuna

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To: drsvelte who wrote (40387)	6/2/1999 6:11:00 AM
From: William H Huebl	Read Replies (1) of 94695

<<I'm not trying to rag you, just get a sense of your thinking.>> Well maybe YOU can make some sense of my thinking but apparently nobody ELSE can. <gggggg> My whole options trading strategy is based on 2 approaches... picking options which will make a large move within a short period of time AND defining the direction of that move. An option which moves in the wrong direction or moves in the right direction but too slowly just won't hack it. I try to pick stocks which I expect to move in the general direction of the markets so it gets help THERE also. SO many things have to be right for you to win that I want EVERYTHING on my side. As a safety precaution, I do NOT throw caution to the winds and buy just any old option at any old price... that's why I tend to stay away from index options because ONLY the at-the-money and in-the-money strikes are even close to reasonably priced. So if I am wrong (more often than I care to admit) and the market goes against me, I still have the stock which like DIS is weak (I still hold 10 puts there) and even if the DOW goes up as it did yesterday, DIS went down. For me it is NOT a betting game but a series of well-reasoned plans to take advantage of the tremendous returns on options. I will only take a large position (50 puts is VERY large to me) when everything is right. There are about 8 stocks which fill that bill right now and only one or two of them have options priced even close to being fair??? One last thing, I use "ambush" pricing techniques where I place an order to fill at the price where the option will be after the stock moves as I expect it to move... and that is OPPOSITE in direction of the option profit I expect to make. I priced DIS puts to buy at a STOCK price HIGHER than it was the day I got the options... it was the lowest price for the option and the highest price for the stock. The stock has been down ever since (doesn't mean it will STAY that way, but it has a better chance than of any alternative I know). BWDIK? Okey? Bill

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