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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: OX who wrote (1195)	1/29/2000 4:04:00 PM
From: jjs_ynot	Read Replies (1) \| Respond to of 2317

OX, For longer term options, what strike are you selecting: OTM, ATM, ITM Often you need 20 percent appreciation on stocks to just break even on longer term options. I personally prefer to have time-premium decay working for me as opposed to against. Dave

To: OX who wrote (1195)	1/31/2000 1:18:00 PM
From: KFE	Read Replies (2) \| Respond to of 2317

OX, Your inquiry about Taxman's strategy reminds me of a trader I used to know. ValueLine would highlight a #1 rated stock each week (I can't remember what they called it) and that stock would usually run up that day. The weekly segment arrived on Thursday via mail (no internet then) so this guy arranged to meet his mailman each morning prior to the opening and would then enter a buy order on the highlighted stock and would sell later that day or the next morning when everyone who had to work (no day traders then) would be entering their buy orders. This strategy proved profitable for a sustained period of time. As to Taxman's strategy I think the key point he made was each option purchase that i make amounts to an outlay of less than one half of one percent of the total value of my account. If this strategy works for Taxman then I think that he should continue to follow it until such time that it needs to be re-evaluated. I think that it would be prudent of you to back test first. I am always interested in strategies that play both sides of the market at the same time. I don't know if I would be doing outright purchases of options though. I have seen successful hedge fund managers who were almost always equally short and long. Many years ago I subscribed to VL and never believed their statistics on the performance on their rating system. Once while at the NASD I did a study on the accuracy of advertised performance and found that almost all were either not accurate or misleading. VL was not part of the study. Regards, Ken