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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (2498)	9/25/2001 10:34:42 AM
From: Dr. Id	Respond to of 5205

But Bill, if you're bearisn, why not buy some puts and limit your downside? What worries me about shorting is that we've all been so lousy at predicting market direction in the past year, that I'd hate to bank on my lack of ability in that... What happens if we get a major short covering rally for 5 straight days? How long do you hold out? What if it really was the bottom this time? (I doubt it, but who the hell knows?) I'm not trying to be negative about it (and I'd say that I hope that it works out well for you, but that would mean bigger losses and possibly margin calls for me!), just don't want to see one of my buddies get hurt (any more than we already have...) Come back from the dark side and go long! :) Dr.Id@IsurehopethatlastFridaywasthebottom.pov

To: LindyBill who wrote (2498)	9/25/2001 10:46:01 AM
From: Road Walker	Read Replies (1) \| Respond to of 5205

Bill, re: However, when I looked at this market last week, I saw nothing out there to drive it up, and everything out there to drive it down. Some folks say that is a sure sign of a bottom, everything bad priced in, nothing good priced in, blah, blah, blah. Sold some covered calls on SEBL and EMC this morning, probably early... John

To: LindyBill who wrote (2498)	9/25/2001 12:37:09 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 5205

>> However, when I looked at this market last week, I saw nothing out there to drive it up, and everything out there to drive it down. In the short term I agree with you, but I'd still recommend you set a stop loss. When a reason to rally arrives, there could be an immediate and disproportionate reaction based on a massive short squeeze. >> I am trying to take small bites... That's reasonable, but why not limit your potential losses to the same nibbles? Speaking of possible reasons for a rally, I picked up the following alleged briefing.com report from the Q thread. 11:02 ET Greenspan Meeting : Greenspan met with the Senate Banking committee behind closed doors this morning; Market News reporting that Senator Grassley is saying that Greenspan recommended that if there is another stimulus package, it should be "significant" and that Greenspan and former Tsy Sec Rubin discussed $100 bln in stimulus. If true, Greenspan's support of such a large stimulus package would be bullish for the economy and the market. duf