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Strategies & Market Trends : The Player's Club -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (5689)	2/11/2000 11:10:00 AM
From: Chip McVickar	Read Replies (1) \| Respond to of 11513

GZ, A few days ago you were discussing this with John: What would have happened with your read from then until now....as you see todays market. What would you still own? Chip ~~~~~~~~~~~~~~~ To: John Pitera who wrote (5503) From: GROUND ZERO Wednesday, Feb 9, 2000 3:03 PM ET Reply # of 5691 John, Yes, that's correct... but, I would probably short the June 1450 put instead since there's about 17K premium left in it... if we ever returned to this level at a later date, before June, then I could short the contract and hold a covered put and still take the premiums.. but, more than likely, if we had a decent rally, that put would dry up and we would just pocket the 17K for very little effort..... I see no reason we couldn't do four of them, each put requiring only half the margin of the contract..... that comes to 68K for that trade..... GZ ~~~~~~~~~~~~~~~~~~~~~~ To: John Pitera who wrote (5550) From: GROUND ZERO Wednesday, Feb 9, 2000 9:35 PM ET Reply # of 5691 John, Had I shorted one June 1450 put, I would have placed an order right at the money to sell one June contract at 1449.90 on a sell stop... we would have been filled mid afternoon and we closed today at 1437.00 for about 15 points... we would also keep the earlier short call naked... the market can't go up and down at the very same time.. so, on side is covered and the other side would remain naked..... contracts entered to cover a short option will generally be placed once the option is at the money... options will also be shorted when they're at the money..... GZ