Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Justa Werkenstiff who wrote (41241)	3/15/2002 10:29:52 PM
From: mishedlo	Read Replies (3) \| Respond to of 99280

In responce to an earlier post on Beta I could not get SI to take this post earlier. I have problems posting in the afternoons lately and do not know why. ========================================================== Perhaps, then, an appropriate measure would be to leverage the QQQs to match the beta of the Q and then compare the performance from the bottom which was February 22nd and then see which has the best risk adjusted return as the Q are a few undiversified stocks. I concur 100% with this sentiment. In fact QQQ calls or puts, which are relatively cheap as well as fluid can be used to huge advantage. With 15% of money in QQQ calls that catch the move, I bet you could do as well as going long. Take the last rise where BRCM went from 33 to 45. Well EMLX and GNSS did not do so well. But the QQQ's sure did, rising from 33-34 to 39. Those QQQ april 34's might have cost 2 points (less if you hit the bottom), and at 39 would have been worth $5) I do not ahve the exact #'s here. I do know in the last drop from QQQ 39 to QQQ 37 the Mar 41's went from 2.4 to $4 and that was less lan haldf the move up. One can put 10-15% on these plays, stay heavy in cash and do just as well. From 33-45 BRCM gained 33%, the QQQ calls gained 200-300% or more. The important point is to be on the right side of the play. If you can manage that, then QQQ puts or calls, and staying heavy in cash is a very very reasonable strategy IMHO. Being on the wrong side of a move in a basket of EMLX BRCM BRCD JNPR might be more painful in fact, with multiple positions to handle. Aj uses rydex funds for these swings and that 200% up/down strategy will work as well. M