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

To: Poet who wrote (9730)	2/27/2001 2:37:08 PM
From: hobo	Read Replies (1) \| Respond to of 10876

Re: NTAP On Feb 21st. I wrote 20 call contracts (March 40) when NTAP was around 34.5 (+/-), I was aware of the support at around 30 that you mentioned. Premium received was 2.125. I figured that time decay plus the downward pressure of late would give me at least one point for my efforts. (i.e. buy it back at 1.125 or less) Yet, I have seen NTAP as low as 29 1/16 and the lowest buy back was 1.25 (I almost took it but I changed my mind, given the fact that selling pressure for the overall market has been increasing). Premium has been back to the 2.25 level when NTAP has been back at the 33.75 plus level (even today, although the printed high has been only 1.75 on the premium and 33.75 on the underlying) During this period of time we have experienced an increase in volatility which I am crediting the strength in the premium to such increase. As I am writing this... I am looking at the NDX & QQQ charts selling off..... yet NTAP seems to be holding, so perhaps at this point I should take the .6875 profit that the market is giving me and call it a 1/2 victory. (buying it back for 1 7/16 for a .6875 profit or 32.35 % News flash -g- I closed the position as I wrote this: @ 1.4375 (1 7/16) Price of the underlying when executed was 32.5 as soon as I bought it back, NTAP went back up to 32.875 and the ask went back to 1.5 Sooooooo. Thanks for the question otherwise I would still be stubbornly holding off for my price. Using the OptionScope from metastock AT the time I sold the call at the above values Volatility shows as 113.2385. Then inputing the values at which I bought it back (adjusting for days left to expiration), Volatility shows as 129.4876

To: Poet who wrote (9730)	2/27/2001 3:21:00 PM
From: hobo	Respond to of 10876

My.. my... my.... If you look at the time and sales for NTAP They executed my calls @ 14:22 (I guess that is Eastern time) at that time NTAP printed a 32.5 as low.... Then.... at 2:23 and onward... NTAP shot up all the way to 33.4375 which remains and it seems it is trying to go higher... and the option went back up to 1.5 plus As I wrote this.... NTAP is sliding back down... Thanks for the question again !! it was a fun exercise to do this trade real time on SI... While doing all this, I was trying to buy back 1/2 my position on the QCOM calls (sold at 4.5, buying them back at 3.75)... and as I placed the order... they executed on ONE contract only (out 20)... and then QCOM shot up about 1/2 point (or so)... GRRRRRR... now QCOM is sliding back down... perhaps as I am writing this they will fill me .... They did... In @ 4.5 out @ 3.75 16.67 % Not a bad day.... The EMC short puts.... are not doinf too hot... (I may be interested in buying the underlying can't win them all. Oh ! look NTAP is falling !! oh well.. In 2 days I have gotten back almost all the spanking I got a week and a half ago.... but frankly, I would like to go back to the "position" trading I have been targeting... This day trading is fun but... you have to be glued to the screen. All right, I won't bitch any more -gg- edit: I am tempted to add to the emc put.... oops never mind the original trade was a 1.5 of a position so I better not. Edit 2: The difference between EMC and NTAP also is the p/e EMC is about 52 (still high, so I may not like it so much, but EMC seems to be the leader in data storage) NTAP has a p/e of 121 plus...