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

To: YlangYlangBreeze who wrote (4066)	3/2/2000 5:14:00 PM
From: Poet	Read Replies (1) \| Respond to of 8096

Joelle, I guess I'm of the "take your profits regularly" school of thought, like freeus. As you know, I started as a daytrader, a bad word these days, but I learned early to be ruthless about cutting my losses early, taking profits regularly, and cleaning house often (only figuratively, <gggg>). For example, I've been taking profits since Tuesday, when I could sense a Nas pullback in the air. I wanted to lock in some money, as well as to release a bunch of the equity that's been held against my naked put positions so that it would be free during a downdraft. It's tough to sell a position and watch it run. I try to set a number in my head when I take a position. If the trade yields that profit in an hour, I close out the position at that point. If the position is a long term one and doesn't seem to be going anywhere, I'll close it out and move on. There are opportunities every day. I don't know if this'll help. I'd love to hear other peoples' answers to your question.

To: YlangYlangBreeze who wrote (4066)	3/2/2000 6:13:00 PM
From: Jeffry K. Smith	Respond to of 8096

Joelle, There are many others, me included, who share your lack of timing ability. Then of course there are those for whom it has become second nature - I'm not quite sure how though! When you find out, drop me a line. I too did the same thing with a recent trade - gave up too soon - I bought 10 contracts of ETEK calls when the stock was around $220 - my contracts went up about $10 the next day and I sold out. The next day the stock was up $20+ (I forget exactly) and I missed out on $20K more! :-( Oh well. Some people have the gift, and others just take more time. P.S. - how's your maid these days? Best, Jeff Smith

To: YlangYlangBreeze who wrote (4066)	3/2/2000 6:52:00 PM
From: Jill	Respond to of 8096

Yes it's true, Poet and I have quite different trading styles, which is kind of neat in that we are separated at birth twins. :-) Time expectations on an option: by that I assume you mean whether to buy close in or further out. Poet tends to buy very close in. Someone else on SI always and ONLY bought the farthest out of the money leaps, and the farthest out in time that he could, and did amazingly well. (Of course, that is dependent on this bull market. In a differnet market, that strategy would not work.) I tend to want a few months breathing room minimum. It has worked for me so far. So you have to examine your psyche. It sounds like you are a good student of Poet's and may develop a similar trading style.