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

To: VoyK who wrote (386)	5/17/2000 7:57:00 AM
From: Poet	Read Replies (1) \| Respond to of 10876

Hi VoyK, Welcome to the thread. Yes, both you and MarkZ nabbed my mistake. What I meant to say was that "Did you know that orders of ten contracts, placed to sell at the bid, are executed automatically....." You did very well on those JDSU calls yesterday. Good work. I'm assuming you took profits. As I write this, the Nasdaq futures are down about 60 points, fortelling a selloff at the open today. Regarding QQQ options, I've not had great success with them either and agree with MarkZ that there must be an extremely large (and rapid) move in the Nasdaq 100 in order to profit from trading the Q's. I think we'll get one today, but in general it seems to me that trading OEX options, for instance might be easier. You get the OI Newsletter? I love it as well. The seminar was worth every penny in terms of time and travel expenses. There were many people from England, Australia and New Zealand who attended, by the way. I spoke to a number of them and they were unanimousin feeling that the trip was worth their time, FWIW. Jim Brown himself gave a number of lectures, as did Chris Verhaeg and the female writers. They had so much material to present that the daily schedule had to be lengthened: we started at 7:00 am and stopped at about 10:00 PM. They provided breakfast and lunch (as promised) and dinner each night as well once it became apparent that they needed extra time for presentations. To a person, I found them knowledgable, skilled lecturers, and extremely enthusiastic. They made themselves eminently available to all conference attendees. I'm planning to attend another of their seminars in the fall or winter. PS: I just looked at your profile and can promise you that you won't be treated with anything but kindness and respect here, so not to worry. <g>

To: VoyK who wrote (386)	5/17/2000 8:11:00 AM
From: Poet	Respond to of 10876

From the Tuesday Option Investor Newsletter (plays on SEBL, JDSU and RMBS): SEBL $140.81 +2.94 (+11.81) Breakout!!! Pull up a chart and look at the action starting around 2:00 ET yesterday. A big move above $130 with huge volume to back it up made this a textbook breakout. It moved up to $140 where it held flat until the Fed announcement. Despite a re-test to $134 immediately following today's Fed rate hike announcement, the rebound was swift and actually pushed SEBL through $140, a previous level of resistance. Despite low overall daily volume, this is a technically bullish pattern. Why? Because not only did the move occur at a historical level of resistance, it also occurred at the 50-dma (then about $127) and held. When you have a technical wedge, historical support, and a moving average at roughly the same place, volume is a slightly less important factor in the equation for a breakout. Every technical trader in world was probably all over this one. We look for the technical trend to continue with the next resistance level at the late March (just before the first selloff) high of $147. A target shooting level of support is harder to find. But today's intraday dip into the $134-$135 might make a good target. JDSU $94.25 +4.25 (+8.25) It took only one hour to fall to the $83 area Monday morning. After that the buyers stepped in and began loading up on shares of JDSU. As we said this weekend a successful retest of the $80 to $83 area could provide a suitable entry point for a new play. This morning shares of the fiber-optics company took off right out of the gate and didn't stop until reaching $96. On the Fed announcement JDSU pulled back along with the broader market to $90 and bounced into the close. No company specific news the first two days of the new week, however it does appear as though JDSU and many of the past favorites at the Nasdaq are in favor again. The volume the past two days indicates the buyers may be back as well, at least temporarily. If the bears do try to have their way with JDSU, look for support to enter near $93, $90 or the $88 level. If you missed the bounce on Monday, don't worry. Like we've said before, this one has produced many opportunities for traders in the past and we expect more of the same this time. RMBS $207.00 +5.63 (+18.06) As RMBS fell to support near $178 early Monday morning, traders began to click on the buy button in preparation for the Fed rally. RMBS and many of the issues in the $SOX began to bounce in what would prove to be a nice start for our new play. RMBS has provided traders with move of about 10% in the past two sessions. The volume was better today with over 4.9 million shares traded. No news in particular, just an improved sentiment for the RMBS, the industry and the tech stocks as a whole. How do we proceed with our play? Well depending on the sentiment in the broad markets, we believe RMBS will continue higher. With that said, we could see a pullback to intraday support levels before the next move up. Intraday charts show support at $195. RMBS formed a nice base today near $210, prior to the Fed announcement. A move back through that level accompanied by strong volume and we could see RMBS continue its flight. If it needs a day or two for re-fueling then be patient, and look for bounces off support to enter this play.