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

To: mishedlo who wrote (9562)	2/11/2001 10:33:51 PM
From: ajtj99	Read Replies (1) \| Respond to of 10876

Mish, I agreed earlier that we need a relief rally, but we also need to have a consensus on when the selling needs to stop. At the least, I believe we'll see short covering at 2:30 or so Monday as well as buying after lunch by those believing AG will say something to rescue the market. I just think there is a fair possibility that we'll drop a little before that happens. As for Max Pain, I believe according to the theory, it really applies 2-days before option expiration, so those Max Pain points may move. If a stock is close, MM's will try to land it. If you are holding EMC, I'd close that put early. It tends to snap back pretty quick when it is oversold. CIEN is also pretty resilient lately. RIMM may be less of a concern possibly. Good luck to all tomorrow.

To: mishedlo who wrote (9562)	2/12/2001 12:01:58 AM
From: hobo	Read Replies (1) \| Respond to of 10876

Selling PUTs in a rising market can get you screwed in a hurry. if I sell a put (as i did on the qqq's), and let's say that, (for illustration purposes), as you suggest from Monday through Friday the NASCUAQ does rise.... i will be one happy oink-oink because as the market rises the puts will lose value, allowing me to either buy them back (if i so wish), or let them expire worthless (if the market price of the underlying has gone up past the strike price of the sold put). so under those circumstances, i can not see how i can get screwed ? i get to keep the premium for my trouble. you must mean if i had BOUGHT the puts,(long puts), then yes, i agree with you. but not if i SOLD the puts, (short puts). now... as for a rising market... hmmm please make it so.... -gg-