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 : Short Selling, Dark Side, Bubble Busting Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (195)	11/22/2005 8:59:49 AM
From: russwinter	Read Replies (2) \| Respond to of 361

did people forget about this thread ?> Maybe a sign? Almost all the index (IWM, SPY,XLF, XLY, QQQQ) put premiums are cheap on an implied volatility basis. I went back to the trough yesterday and reloaded IWM Dec 67s, SPY 125s, XLY 34s already did XLF. All my Novembers expired way out of the money, but that means the last couple points of advance didn't matter. Generally shoot for a delta of about 50. I had a IWM DEC 67/63 bear spread in place from earlier, and bought back (closed) the 63s at .20. Bears need to be very careful about naked shorts and straight shorts. I've been using them on homebuilders and a few others, but am pretty aggressive at writing covered puts against them on the swoons. IV on homebuilders is high around .45-50. Bear spreads are the other approach.