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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01 -- Ignore unavailable to you. Want to Upgrade?

To: Joe Smith who wrote (10768)	4/8/2002 10:39:14 AM
From: Bucky Katt	Read Replies (1) \| Respond to of 13094

Yes, although today the VIX is up around 6%+, but that is due to the downside, so they can charge more for the puts. You also have to keep track of the put/call ratio. A lot of calls got very cheap this morn.. You have to figure at some point the markets will get a lift, even if it lasts only a day.. The best time to buy long is when things look their worst, and the best time to short is when things look their best. Most cannot master this. A good example of overtrading, done by me, are the Apr. 36 QQQ puts, bought around a buck a week or so back, now trading for 2.65...I took profit way too soon... At any given time in the stock market, the best bet is that the market is in a trading range. Option writers know that the market, any market, will spend two-thirds of the time in a trading range. Which is why option-sellers tend to make money and option-buyers tend to lose money. Trading ranges kill option-buyers because option buyers are betting on movement. A trading range is another way of saying that an item's movement will be limited. Obviously, IBM has moved into a new range today, so the put holders are sitting pretty. Did I mention I was short some IBM?? I always look for things that can move big.