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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: McNabb Brothers who wrote (15523)	12/21/2001 6:46:35 PM
From: mishedlo	Read Replies (1) \| Respond to of 99280

It is easy for the crooks. They know the position. We are guessing the position. They know if the they are holding the calls or if they sold them. All we see is open position. If there are 25,000 covered calls sold on a stock at 50, We look and see resistance at 50. Hell there is no resistance at 50, there is every bit of incentive for the crooks to manipulate the price above 50 so they can call the stock and sell it. My point is we are guessing and they are not. That is why it is not so damn easy. Rest assured it is far easier for the crooks. Much of a stock price movement is dictated by delta hedging in the direction of the stock if it can not be contained so the crooks collect on both sides of the trade. Selling options is not so easy either. Selling strike 25 EMLX calls when ZEEV thought it was destined to fall back to the teens would have been an enormous loser. More so than buying strike 25 puts with a fixed known cost. Of course one could bail on the calls, but one could bail on the puts as well. Also selling PUTs is not exactly my idea of a great time either. If I think a stock is going up I prefer to buy it. Someone who sold 10 EMLX puts at 20 maybe picked up a point or two, but someone who went long at 20 could have picked up 20 points. That said, for a few weeks now action has been more or less sideways, if one can identify that CORRECTLY then selling puts and calls was a winner. In fact I suggested selling both the EBAY strike 65 PUTs and CALLs TO YOU! As long as EBAY stayed in a reasonable range protection was great. EBAY closed at $65 LOL One could have made $6-7 on a stock that moved nowhere at the time I posted this idea. I guess I need to follow my own advice. M