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 : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Paul Shread who wrote (44976)	5/22/2003 2:55:19 PM
From: Trumptown	Respond to of 52237

lol...i can't argue the point Although, I missed AMES the first time it emerged from BK Went from .26 to over $20, but ultimately filed BK again. So, I'm not ruling out a significant move with KMRT, but won't stay too long, or be too long... -g Chart still looks compelling...

To: Paul Shread who wrote (44976)	5/22/2003 4:49:24 PM
From: SpecialK	Respond to of 52237

Wow, Paul, that is an interesting response on Kmart. I wanted to draw from the brain power on the thread in regards to helpful indicators you use that any particular stock is going to be within a range of +/- 10% for example over a month's period. I believe the best one but a tough one to use for profit is ADX. Here's my option play example>>> Ciena trading near 5, has a boatload of calls and puts open interest near 5. From Yahoo> over 4000 puts and over 8000 calls. If MaxPain has its way in June, this will stay near close to 5 bucks. The June 5 calls show a bid/ask of 0.25-0.3 and the puts have 0.30-0.35. The plan is to buy the stock at 5, sell the covered call, short the stock at 5 and sell the naked put. This profits 0.55 or roughly 11% for about 4 weeks work, if it closes at 5. The breakevens on the trade are 4.45 on the low side and 5.55 on the high side, with 0.05 cent moves equal to 1%. This is the same as a straddle, so the buy/ sell may not be necessary, but my broker had an issue with selling naked calls (unlimited loss) vs. naked puts (limited loss). I'll check with them on straddles, it may not be necessary. TIA, Ketan