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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: FR1 who wrote (32413)	3/5/2001 12:39:28 PM
From: edamo	Read Replies (2) \| Respond to of 65232

fr1..."use some kind of metrics".....not me, only metrics i care about are those that are used in europe.... try not to use any math or formulas to make decisions...try more to become intimate with the underlying companies, see how they react to news, separate the news between specific and general, and watch the movement of option premiums....in the case of atml, the premium doubled with a 20% movement in the underlying stock, and the premium that doubled was for a strike that had ten months left and was more then twice the current share price...it's a win/win situation...worse case you more then double your money, best case you capture a premium swiftly as time erodes and volatility normalizes.....remember if atml at 20 in december, the prem for a jan 25 may not be more then 1.... for the long term or leap positions best to sell calls or buy puts when topping and buy calls or sell puts when bottoming......not good as many have learned to try to roll a long position, which appeared to work in a bull market, but no tangible repair strategy exists...repairs only made on the short side... try to set goals both on profit and loss, limit losses and follow gains up with mental stops....if simply using a math calculation assured gains, then all would be rich...not as easy as the non tangible factor is the volatility...it is at extreme times of excess volatility that you can capture same....but you must be a bit myopic and narrow how many stocks you follow....at the moment i'm only watching four....atml,qcom, rmbs, xlnx.....all of which are attempting a basing action and have successfully tested and bounced off of lows....would stay away from the "falling knives" that some try to catch....and that includes many oft times mentioned on this very thread....wait for a basing, limit your risk good luck ed a.