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

To: jjetstream who wrote (7405)	5/5/2000 7:55:00 AM
From: edamo	Read Replies (1) \| Respond to of 8096

jjetstream....cause and effect i made nothing personal with any poster....read the thread, i merely supported safety in dim calls....it then became "personal" toward me, in a response from rocketman...oddly enough we have resolved and are back on topic.... the constant comments, off topic, and monitoring by the less experience who are more concerned with punctuation, grammar, whether caps are used or not, and protocol are the cause of the problem....someone noticed and commented to "why continue to fan the flames" look at my last posts of yesterday afternoon...long discourse on option strategies....only to return to more "personal" comments...and yes i did respond yesterday to poet "betray" post....but note well i "responded", not "initiated"... it seems that the protocol set by the mother hens is to be apologetic for another, to determine who has value, and to comment on every post, and place their imprimatur on same...this stifles the evolution of thoughts and limits learning...

To: jjetstream who wrote (7405)	5/5/2000 9:10:00 AM
From: Poet	Read Replies (1) \| Respond to of 8096

Hi jjetstream, Last night I said I'd post more of my options trades, including the reasoning behind them. Here goes: I'm trading RMBS June 220 calls. RMBS is due to split 4:1 on June 14th, has traded as high as 471 in 2000 and is highly volatile. Here's the chart: siliconinvestor.com It bounced at the 130 level during the April crash and now has support in the mid 190's. Yesterday's activity in the stock is signified by a doji (candlestick pattern) which means RMBS could break out in either direction. I've been buying slightly OTM calls (which since they are not the front month, give me a little time) which are highly sensitive to movements in the underlying. I buy them when RMBS approaches support, then immediately set a limit sell aproximately five points higher. Sometimes I'm filled a hour later, sometimes I may wait a day, but trading RMBS' volatility by the using the chart, in the face of an impending 4:1 split and general bullishness on the chipmakers has made this a lucrative play for me.