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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Step1 who wrote (33084)	5/6/2003 5:05:35 AM
From: smolejv@gmx.net	Read Replies (1) \| Respond to of 74559

what about;? achamchen.com

To: Step1 who wrote (33084)	5/6/2003 6:18:27 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hi Step1, DJ point you to my log of trades already. I follow rules but use judgment: (a) Keep doing it to stocks one does not mind owning, and do not stop, unless the volatility premium is not interesting; (b) Do not get greedy (Several years ago I once got putted 9,000 shares of heavy priced stock that eventually righted itself, but the interim wait was hell); (c) Spread around the option trades on several names, several time periods; (d) Do some shorting of naked puts, shorting of covered calls, but stay away from shorting naked calls, and resist going long on call/put unless to close existing short position; (e) Take the profit and run at any time when the volatility premium has vaporized, and no need to ride any position until the bitter end; (f) Some folks like to do option trades of 1-3 months elapsed time, I tend to do some trades each month, but of elapsed time from 3-6 months. Once convoyed, I have positions expiring each and every month, shorted 3-6 months before. I like the time premium as well as the volatility premium ... they taste almost the same, and spends as well:0) (g) Once putted some shares, consider turning right around and write calls against them if the current price is still close to the put strike price, and think about shorting more puts ... fall in love with no shares. I do the above mostly to NEM (since mid-1999 Message 12402354 December 28th, 1999), and more recently to FCX, HMY, AEM, and GFI. I figure I will stop on HMY, GFI, and AEM because of the strengthening local currencies against the USD. Here are my 2003 NEM trades: Message 18396696 Message 18497908 Message 18732391 Message 18765884 Message 18883524 ... and my current positions in NEM are: Short dollop NEM June Put 30 @ 3.83 Short 2 dollops NEM Sept Put 30 @ 3.92 Short dollop NEM Sept Put 25 @ 2.75 ... and 4 dollops of NEM shares that closed at USD 27.63 last night. I can live with accepting shares if putted to me at 30 and at 25. I may short some December NEM covered calls at strike 30 as the share price near 30. I may first short more puts at strike 25. I only use ... pcquote.com ... this ... iqauto.com ... and my willingness to own Newmont to guide me. Chugs, Jay KEY WORDS <<OPTION RULES>>