Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: axp who wrote (14434)	1/20/2001 12:18:17 AM
From: aptus	Respond to of 18928

Actually I'm intrigued with your strategy. I may follow up with some simulations when I get the chance. The main problem I see is not so much that your stop will be taken out (since AIM would have recommended you sell at approximately that price anyway), but with (1) A hard price drop that blows through the stop (as per my previous note) and (2) Setting the stop correctly. Many stocks swing by 5% or more in one day and a stock that might close up for many days in a row may still retrace to take out your stop. If that happens consistently on the first recommendation, you'll be consistently selling for less than if you'd simply sold when AIM recommended it. Still the idea is very interesting. regards, mark.

To: axp who wrote (14434)	1/21/2001 9:36:09 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi axp, Another strategy I use in a rising market is, once I've satisfied my basic cash reserve requirements, I start to sell CALL contracts on a short time horizon for the same number of shares that AIM would have me sell. For instance, if AIM's saying I should sell my next 100 shares at $30/share and there's a contract for $1.50 out a month or two in the future, I'll sell that CALL and wait to see if it is fulfilled. (remember that I only do this when my cash reserves are topped up) This extra "harvest" of dollars is nice when the price still rises and your contract is fulfilled. It's also not bad when the contract expires unexecuted as the premium you've been paid is pure fun money. Best regards, Tom