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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: RonMerks who wrote (6099)	8/20/2007 10:53:39 PM
From: SliderOnTheBlack	Respond to of 50724

re: ["Options getting squeezed on GS. Premiums on put sales have been nearly halved here. The market makers just closed the door on what 'was' easy money."] Easy money never stays "easy" very long - does it? When $10 premiums become $5... the risk:reward equation changes. Stick with the $130's and $150's you're holding, don't chase anything else. Be patient. If we get another leg down...you're getting paid $10 to take GS in at $150 = a basis of $140. And the $130's w/premium give you a basis in the $120's... overall, you'll be in on avg. in the $130's. + hopefully, you made a couple of bucks flipping into the run thru the $190's. If you bought into the dip around $160...don't be afraid to let some go into the short covering should the Fed do a surprise rate cut. You've got to be willing to trade yourself into and then out of the bottom. The volatility isn't going away anytime soon. Longterm, GS is a $300 stock ...derivative meltdown, or not....when, not if. How they are positioned in China... is to "die for." SOTB