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

To: edamo who wrote (351)	12/29/1999 1:32:00 PM
From: buffalogrif	Read Replies (2) \| Respond to of 8096

Well I guess there are some areas on which we'll have to agree to disagree. I'll let other readers decide where they stand. This is what I do for a living. It's how I put my kids through college. Because it's my profession, when I find a tool that makes it easier, I use it. If it complicates my life I get rid of it. Sounds to me like the math stuff which is behind option prices complicates your life. So you don't use them. I find them helpful; so I use them. So we disagree. So what? That's what makes a market. But I do think that those reading this thread to learn should know that these tools exist and then make their own judgments. Unfortunately you are not correct when you say that the models and the Greeks are an attempt to predict future price movement. There is no predictive value whatsoever in any of these components. They measure non-directional sensitivity. Nothing more. At some point we'll get into specific trades. I'll argue that they're helpful and you'll argue that they're nonsense. Other readers will pick and choose what's helpful to them. That's what this is all about as I see it. Grif

To: edamo who wrote (351)	12/29/1999 6:29:00 PM
From: taxman	Read Replies (1) \| Respond to of 8096

i buy puts as well as calls. so i expect to be successful in a bear market. in fact, i have been successful buying puts in a bull market. regarding qualcomm you are, of course, welcome to your opinion that shorting the put is a better play than going long the stock or buying the call. i agree with buffalogrif that it's not. also i was trying to make the point that, in the short run, puts decline in price at a diminishing rate for each point the stock goes up and at an increasing rate for each point the stock goes down. this is why i don't sell naked puts. you are welcome to disagree with this. regards