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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (29131)	10/19/2002 8:12:16 AM
From: brogan	Read Replies (1) \| Respond to of 29382

Hey Ditch: Looks to me like part of a bigger picture where the longs took control from the week prior. Up 12% on the OEX ie. for just 6 days of trading. Big gains from the smart money that may push into the next one or even two expirations with elections coming in Nov. and favorable seasonality. Will the smart money be satisfied with 6 days of gains on the OEX for example, or 36 days or 66, or change dirrection?? Only the smart money knows (gg). Probably some 20-50x gains on their money in just one week in S&P's, OEX. How sweet would that be.The movements in these index options now that we trade in the 1000's on the Dow and Nasdaq are so much more exaggerated than when they were first set up, when we were trading in the 100's on the Indices. A one point move in the OEX is approx. 7 points on the Nasdaq which is alot different at 1300 than 130. OEX: siliconinvestor.com Trend: stockwerld.com Regards

To: Ditchdigger who wrote (29131)	10/19/2002 3:27:47 PM
From: Sergio H	Read Replies (2) \| Respond to of 29382

Monday, October 21, 2002 Beyond Relaxing After a rally, capping upside benefits By KOPIN TAN What now? As October options expired this weekend, companies from Microsoft to International Business Machines have reported earnings that have cleared the low bar of reduced expectations. But others, from Intel to Sears Roebuck & Co., have stumbled badly enough to keep the profit picture cloudy. Investors holding call options, many of which have appreciated with the stock rally, can do better than relax now. With some stocks pushing toward their near-term resistance, many investors are looking at the options market for calls they can sell against recent stock purchases, picking strike prices at or just beyond the perceived ceilings -- depending on whether they want stock to be called away. In fact, the pick-up in such covered call writing indicates that these investors think stocks were oversold (hence the stock buying), but are skeptical about the extent of the rally (hence the short-term call selling, which caps upside benefits, should stocks soar.) Investors who are concerned that stocks may be nearing the peak of their run-up also might think about moderating their upside exposure. According to Elliot Spar, Ryan Beck & Co.'s option strategist, they might sell existing calls to lock in gains while rolling desired positions up to higher strikes; sell half the call position to book some profits; or sell a further out-of-the-money call to turn the calls into bull spreads.