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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (28811)	9/15/1999 5:48:00 AM
From: IQBAL LATIF	Respond to of 50167

We say and it happens.. look at this SOX post.. 570 and next one now.. techstocks.com Wednesday, Aug 25 1999 4:47AM ET Reply # of 28813 Great post and good reasons I appreciate your response.. I know many of these companies do not make sense at all, market has certain mechanism to evaluate them, one needs to know thorughly that internal mechanism of the market, look at Iridium it has gone to dogs, market with all its follishness decided this is a non flier. Like wise money churner MO is dead in waters, however this unique 'foolish' very sensitive system is ready to be positive on stocks like Yhoo. Now, gallons of ink can be poured on the logic of valuation the point I weas trying to make why to stand in front of a rolling stock why to pull the stocks to what we think are reasonable 'valuation'. I know your are neither a bear nor a bull and I totally agree with your stance but to be neutral the first thing is that one needs to be invested , two ways to do that either use of leverage and index to get the same benefit as it would be if your every penny is invested or fully invested in individual stock. I think most of the passive investors are like later type, they buy stocks hold on to them and wait for a decent run. On this thread we don't do that, we buy like Yhoo 130calls when Yhoo recently traded down or Amzn 95 calls, now at 450 test of DOT we decided to go in spending some good money on these calls, now the leverage is huge, like 50 calls of Yhoo and 50 of Amzn but the outlays are not back breakers in context of my account. I stand for taking these oppotyunities for me MU INTC AMAT recently represented a good opportunity, at that time similar arguments were raised and I think you are not the one I think off, it is people who have perpetualy being negative. Now like they make fun of bulls and treat all these gains of marekts as paper gains for me when I get out of my positions after a solid run of last few days, where you were not that positive it is good to see how leverage works.If markets at 457 had continued to head south like that Guru who keeps adding 1/3rd of puts to his shorts for couple of years I would have done and engaged in similar startegy. The short nature of corrections in this market only point to me one thing get on top of this market by playing the dips .. buy the dips and sell the tops, but buy the dips has to be as close to the bottom as possible. In my opinion if leverage is taken out of the equation I doubt I will pay 70$ for MU / however I will certainly pay few $'s for outside the money call like Jan 80.. and wait for that run, now what I do additionally on tops like this is if I am adding 10 leading stocks of any index for say Jan.. like AMAT INTC TXN ALTR XLNX, (by the way I have been long these stocks for donkey number of years in my core) here we are referring to trading positins I will sell say 570 SOX calls for Sept, than in Oct another set of 20% out side calls, the premiums paid for Jan for individual stocks are almost covered by Oct, my volatility or Beta is very low this way. I don't think that what you call as excessive valuations can be ignored because we don't get to undrstand the stocks. I have since 1985 when DOW was at 5000 similar arguments were made and same for SOX at 150.. we are almost three times above those levels.. for me it is all about opportunity and that is the way I take it.. No one use array of 'puts' more effectively than me.. I keep pointing to all this in muy posts.I have these 1330's Septs and even 1350 (thanks to Jeff).. on one hand I am long on individual stocks calls with may be a 100 $ exposure I try to leverage it 10 times so any move upward I am a greatest benefactor. on the other hand SPU's are used aggresively when market turns around if this becomes common practice I am sure we will see far better returns on day trading. All this is possible only because of short nature of any dips if we have a long term bear market where new lows are made every month the case will be reversed and puts can work equally fine on stocks and calls can be sold, but until that long term bear market dawns I am not going to fine tune my own strategy that has worked so far. Any short dip I am short at very close level on SPU.. I have learnt this the hard way don't ever bet on one side, play two sides of the markets and play every day.. I know these are important issues we try to implement the best for our thread.. I am testing and backtesting my posts every day for simple reason we see the results every time I look at my core. I can understand it may be complicated, difficult to implement but I try to 'teach' my style, I think it is not very popular and neither is my approach to market but I need a challenge too. This thread is a deserted thread imagine I stop talking to my own foes also, I will have no point of contact, allow me this and I totally agree due to my eccentric approach I never write on any other thread so as not to hurt sensitivities, please bear with my style. I thankyou for engaging once agin in a very purposeful doialogue I find you a very interesting trader and good mind, you provoke me, it helps, I need people like you and I want to thank you from bottom of my heart. Love and regards..