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Strategies & Market Trends : Swing Trading With Options -- Ignore unavailable to you. Want to Upgrade?

To: Teresa Lo who wrote (55)	8/22/2001 7:11:45 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 88

Hi Teresa, Good of you to stop by our little thread here. I try to keep up with your posts over at 20/20 Insight: Trade Smart, Not Hard Subject 36945 Not enough hours in the day to keep up with all I'd like to. :( Thanks for posting the example from your site. Always nice to get those multi-day swings, especially when you are on the right side. The protection of properly managed options is a real plus. I've had an interesting situation over the last few days with a QCOM SEP65 put. I paid fair value of 6.00 for it on Friday with QCOM at 62.50. Today at the close QCOM is at 63.75 (a change of 1.25 from my entry) and the inside ASK on SEP65 is only 4.50 (4.60 is the worst) or 1.50 less than I paid. The best bid is only 4.30. The price of the near ATM put has moved farther than the underlying stock, and that's not counting the loss to the spread, when it "should" have moved only about 1/2 as much. The price of the calls has dropped in a similar manner, with the implied volatility going from 62% (the average for QCOM) down to about 50% in a few days. Do you know of something that commonly happens around the time an option changes to "front month" that would account for the sudden collapse in volatility? TIA Dan

To: Teresa Lo who wrote (55)	8/22/2001 7:33:03 PM
From: underdog430	Read Replies (1) \| Respond to of 88

Teresa, I still think that day trading the eminis (well, the ES and the NQ) is a great way to go if you have a personality that can tolerate it. You always make it look easy in your room and I really don't think that it is that complicated (while trading options is undoubtedly complicated). There were a couple of interesting comments about a recent shift to futures on the Day Trading Fundamentals thread. Message 16243684 Message 16244338 Of course, I don't think that most people have a personality that is well suited to day trading the eminis. I didn't actually lose money trading the eminis - I just suffered psychological damage. Getting Victoria Pearson for your room seems like a real coup but even without her your room is relatively cheap (not that I'm suggesting a price increase). I was reexamining the various chat rooms and advisory services in the context of screening candidates for swing trading (which I think is one of the bigger hassles of this kind of trading) so my comment about your pricing is in that context. Mark