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 : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: skinowski who wrote (127143)	12/16/2005 2:19:47 AM
From: Win-Lose-Draw	Read Replies (2) \| Respond to of 209892

...you think of puts primarily as "cover"... Hell no! Sorry if I gave that impression. Puts are the safest way to play for downside trends in an upside-biased market like equities, I use them for speculative purposes all the time. In fact I have some now, because (a) they're cheap and (b) you could be right and this is going to crack downwards in a hurry. A "wedge" is just a range with drift. More importantly (at least to me) is that I don't define ranges based on prices, I define them based on volatility. More or less stable long term price channel + ever-decreasing trading ranges -> rangebound. I've shared my issues with P/C other times, so I'm not going to keep flogging that horse. There are a million equivalent ways of catching a move, if P/C fits someone's mode of thinking, who am I dissuade them? -g- A higher expected return may justify a trade with a lower probability... Yep. And because the biggest moves are the biggest surprises, the only hope of catching them is to find cheap ways of betting on the contraintuitive.