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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: JRI who wrote (17597)	6/12/2001 9:59:31 AM
From: mishedlo	Respond to of 30051

JRI - I appreciate the question. Not sure you should be listening to me cause my last 2 month calls were terrible. Perhaps we are back in the mar/feb scenario where the powers that be shorted enough stuff at high enough levels that they want to make 100% sure that calls stay out of the money and will sacrifice a little on puts being somewhat in the money. Also looking at the PUT side, it is hard to say whether or not the put interest is sales of naked puts or puts bought and that makes all the difference in the world. Right now, I would suggest that max pain seems to be working again after "failing" for some time. Judging from today's action, it might appear that we are just headed lower period. The question for me is to sell my june puts now that they are slightly in the money or wait for another drop. Since there is little time premium left and I am quite under water on some of them, I will ride them out. On a big drop tomorrow *like today) I will take the $ and not worry about it. I like Zeev's idea of buying QQQ puts (if one must play the game) several months out. Nowhere near the cost of individul equity puts. Much safer but less reward as well) The Sept's I bought recently at 47 were underwater for a few days but have recovered very nicely now. M