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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (67419)	11/17/2003 9:25:25 PM
From: BubbaFred	Read Replies (1) \| Respond to of 94695

On the contrary, it's full of hedgings. There are two parts to my style: One set is for establishing positions (buy stocks) and the other is to get hedged by using options. I buy stocks at lower price by first selling out of the money puts and if get called, the stock is bought (at lower price than at time of selling the puts). I set the strike price based on whether there is anticipated downdrafts. If by expiration the stock is above the strike price, I get to keep the premiums. Sure some ran away and never could get to sell the puts, but there are so many others to pick from anyway. I buy puts on some of the stocks I have, as insurance against downdrafts because I sell covered calls on some stocks I have. Volatility is an added bonus. If volatility is expected and there is signs of larger daily trading range, one can go long on both QQQ puts and calls. If volatility does take place, one can get gains from one (either call or put) and there is a good chance of breaking even on the other. If volatility doesn't take place, then it's time to bail out at minimal loss. So, don't worry. Keep on posting and don't let my recent posts change your way of expressing your thoughts. I'll gage on the appropriate action by myself and for myself. I only mentioned it (volatility) because I happened to got them tuned correctly with other factors that I follow. It's just helpful to get a second opinion. There were other times when they were out of synch and those were times of did nothing but watch and see how and when to synchronize them. I am just glad to be able to read your and Vi's posts because I get to know other factors in the economy that impact the equity market. I could never figured them out before, too much like foreign language. But your talking back and forth with Vi have been helpful to understand the strong uncurrents taking place that have potential big impacts. Timing is always the biggest unknown variable.