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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (22767)	4/14/2000 1:58:00 AM
From: Lee Lichterman III	Read Replies (2) \| Respond to of 42787

Mandragorian, thanks for the SUNW results. Jacek posted the detailed report on our site which can be found on my profile. I can't post the address since I have a message board that SI considers competition to their membership. SUNW made 20% of thier income from trading profits in the market. The PPT will have to save this market to keep those profits rolling in on these tech stocks or else they will have to grow the old fashioned way. <ggg> Jeff, yes of course the big money would have been hurt if they wrote those calls naked and not covered. of course if they owned the stock and then sold them, then who cares. That is my favorite strategy as of late. It is low maintenance to trade that way. Buy a stock that you think will go up, especially if it has high premiums on the options. Sell the covered calls against the stock at a higher strike, then hope the stock rises and you get called out. If so, you bag the stock appreciation up to the strike price plus you pocket teh premium. If the stock drops, you decreased your risk, and still own the stock so you can repeat the process. If it is a high risk market and you aren't real sure about the stock going up right away, then if the premium is high enough, you can sell deep in the money calls. This increases your chance of being called out, decreases your profits but it also protects your backside. Your only profit though will be the premium minus your trading costs. this usually only works well on extremely high premium stocks like internets, B2Bs in their prime etc. Minimizing the profits from the buyers of calls and puts is a well know act. Ben Antonitus ( sorry if I misspelled your name) runs a site that lists the MAX PAIN of most of the more common stocks and indexes options. His site is at ez-pnf.com Chris, I just have to think we are near at least a short term bottom. I still like my levels from yesterday around 3500 or so on the NDX and the NASDAQ is close to there also. We need a bounce up on the close though so we don't form the 3 black crows or it means more downside after the bounce. I would expect the analysts to put a positive spin on the Fed meeting probably spouting AG won't raise with the market weakness or some BS. I don't see how AG can NOT raise or else it will prove he IS targeting the market. A lot of bad press on MSFT in the news and even specials here on how they are a bully, sign of a bottom soon? I wish GTW would have done better in the business end so I would have some confidence buying. Too chicken right now even though my system is saying it is time to start thinking about it. <ggg> Trying to decide right now if I will play the QQQ, profunds or sit tight for this expected bounce. I would like to try and get a bit of upsdie to get a feel for teh market then reverse short when the next turn hits. Profund is safest but end of day only trading requires I pay closer attention so I can hedge with QQQ puts should it go wrong intra day. I may just buy a beaten up telecom and sell calls, seems to be the safe method lately. The DOW dropping is adding even more liquidity into the system now. A rotation should be coming soon. Funny though how the treasury news wasn't released today regarding repos. Wonder what they are trying to hide? Chris, Your SPX chart makes it appear we are looking for the same bounce point there around 1400. Good Luck, Lee