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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Mr.Creosote who wrote (46357)	12/1/2005 2:05:06 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

cold air headlines.accuweather.com

To: Mr.Creosote who wrote (46357)	12/1/2005 7:32:26 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

who dared take naked short positions via index puts/leaps and not exit or cut losses when the stampede starts has suffered.> As you know I primarily use at the money puts and bear spreads in cheap indexes and individual stocks. In the winners, once they get solidly in the money then I give up some delta, and roll to a lower strike price so as to control potential loses. If they go against me, the loss is limited to the put premium, so protects some against the stampede effect. Of course once those are gone, I have to make the decision of when to get back in. This time I decided to use more out of the money puts near the peak of this move, like IWM 67, SPY 125, QQQQ 41 and XLF 32. On the XLY I used in the money 34s. Those were working so far this week, but here we are this morning with another flagpole rally. This middle of the night rally ramp gambit is perplexing to me, because of what I mentioned here yesterday Message 21932156