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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Big Dog who wrote (93362)	11/9/2007 9:42:39 PM
From: ChanceIs	Read Replies (1) \| Respond to of 206181

>>>I buy more and average down...it always goes the other way enough to make a profit....until it doesn't LOL.<<< Any more I have been taking a small fundamental position and trading around it by selling calls above and puts below and then beating them into an "hourglass shape" over the month. For example I started the November cycle long 1K of DVN at $85 and sold 10 Nov $85 calls and Nov $80 puts. When things drop I roll the calls up and sell more puts, and vice versa. If you have a really good month, it looks like an hour glass at the end. It takes guts (or common sense) to sell puts when things are down and calls when things are up. Gentlemen don't do this....but I did make well into three figures today banging the investment banks and credit insurers around. Schwab has this nice new feature where you enter an exit profit point with an opening order. (They had alerts, trailing stops and conditional orders before. The new set-up makes it really easy.) I think I pinched Merrill, MBIA, and WM collectively 12 times for $0.25 each - with all trades closing successfully within 45 minutes. I am very proud of myself. When I began to see that I could do no wrong, I got the h*&l away from the computer. Back to hourglasses. I have about $3K of time premium in those short DVN puts and calls running through the hourglass between now and next Friday. My favorite time of the month. I joined the Washington chapter of the United States Association of Energy Economists. Great group. Adam Siemenski and Guy Caruso each give a pitch once a year. We meet the third Friday of every month - options expiry. Its great to get out of the office and away from watching those little puppies dry up and shrivel in the sun. Be careful with those day trades Big.