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


To: tyc:> who wrote (308)2/10/2000 5:38:00 PM
From: OX  Read Replies (1) | Respond to of 355
 
i was just getting ready to reply to your previous post :-)

well, you missed it (luckily :-) today because DELL peeked it's head just above 39 (high 39.25).

i agree w/ what you said... what's cheap to one can still be too expensive to others. your hedge is good to have.

>>>remove the hedge when the stock climbs to within 1 SD of the 50 day MA

i like the basic idea behind this, and w/ your other comments following it, I think you are right that you'd have to cover if it started to go above your short price, yet was below your 1SD/50 price. you want to play the technicals, but your entry point matters as far as money management goes.

>>>paper trades sure seems easier than real life

absolutely! lots of things can go wrong w/ real trades, not the least of which, for a short, is being able to find shares to short :-)