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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: buffalogrif who wrote (349)	12/29/1999 12:09:00 PM
From: edamo	Read Replies (2) \| Respond to of 8096

grif...."100% correct" must be nice being infallible...."genius" "bull market"...doesn't the same apply to buying calls as taxman does....not so successful in a bear market yes? not a novice, been in the markets actively since the early seventies...lived through post vietnam economic damages, oil embargoes, bad wheat deals, whatever....adjust to the surroundings examine and comment on risk/reward in a simple manner... what entails more risk if a stock reverses itself....? real life....going long qcom at market price of 609 or selling a jan600 aua-mt for 64????? if you want to own the stock, how risky is it to buy at an adjusted cost basis of 536???? and if you don't back in you make 10% on your capacity which otherwise lay fallow! go back to 87, 73, 29, whatever....if you aren't prepared for the worst event, then it will occur....if prepared just another opportunity.... and how were the naked put sellers taken out in 87???? please elaborate.....and perhaps you will discover what i already know.....87 also wiped out many long call holders, or did they survive......not to mention the margin calls on the highly leveraged holders of common shares.... risk is what you make it....you determine it....the greek method that you embrace through mathematical calculation is an attempt to "predict future movement"..........and if the models were perfect, and the predictions fell in place as the model provided it would be like snatching candy from a baby....let me answer my request of you about 87....the hedge funds and naked sellers who got blown away used these very models.........how with the help of mount olympus did they err in the "predictions"???? try to keep it simple....

To: buffalogrif who wrote (349)	12/29/1999 1:56:00 PM
From: Jill	Read Replies (1) \| Respond to of 8096

I have to come to ed's defense here--he's been in the marekt 30 years and would never confuse genius for a bull market. He's been through it all and is a veteran and has a substantial portfolio and knows exactly what he's doing. I've rarely seen him make a mistake. He watches trading ranges very carefully, for overbought and oversold. He eschews some of the more complex T.A. and let's face it, most people trading don't actually figure out that stuff. Though I am very interested in reading what you are going to post about options, I know that ed understands the risk and benefit very well, and is trying here to elucidate the winning strategy of selling puts. I think Roth's book explains it well, too.