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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (37196)	6/2/2000 3:48:00 PM
From: Bob Duncan	Read Replies (1) \| Respond to of 63513

Did the NASDAQ announce a 3 for 1 split a few days ago?? I never would have imagined an entire index could rally this much this fast. I can see one falling this quickly, but going up this quickly is something I never imagined possible. It is almost like we are seeing panic covering of shorts, but frankly I am surprised that many people were shorting at all due to the recent history of the Nasdaq and the fact that many of its stocks can wipe out a short in a matter of days. Still, I really have no idea what all this volatility means. It means that almost any Call position a few days ago has made many people amazing returns, and any Put position is basically worthless, but at another level, I think it means that at the moment option plays on virtually any popular Nasdaq stock can be profitable. Lately, I have been taking a 2/3 Call, 1/3 Put position on the same security and the results have been amazing. Additionally, I find myself sleeping much better at night knowing all I need to make me happy with my trades is a volatile Nasdaq. I do fear one thing though. Despite all the talk that a correction occured and is now over, I still see plenty of stocks that are at nosebleed levels based on PE ratios and real growth. Granted, I know no one cares about PE anymore, but when I see stocks like SEBL at a PE of over 200 with people expecting another 40% gain in a couple days on the long side, I have to wonder if this market will ever calm down until we see a REAL correction. Good luck to all.