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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (10768)	12/2/2008 10:41:09 PM
From: Augustus Gloop	Respond to of 33421

If we struggle between 8800-9000 I'm very much on the dark side. I'm not sure about this but I think a bankruptcy with our auto makers would bust the union. If that's true and I were in congress I wouldn't give them a dime until they declared bankruptcy.

To: Stoctrash who wrote (10768)	12/4/2008 10:20:48 PM
From: John Pitera	Respond to of 33421

building upon my option post so you buy a long position at 78.81 (using today's closing prices for rough illustrative purposes. finance.yahoo.com and write the Jan 77 put for 11.50 go long the QLD at 23.80 and sell the QLD Jan 2009 24.0000 call(OPR: QLAAX.X) for 3.20. finance.yahoo.com Now obviously you have to do a type of ratio of longs and shorts. you have to do a ratio of 3 times or really 3.3 times as many shares of the QLD and the QLD calls that we'd be selling for 3.20 notice how the $3.20 * 3.3 brings you to $ premium capture of 10.56 pretty close to the premium capture of $11.50 for the QID Jan 77 puts. Even thinking about this is predicated on these really high implied volatilities in these equity markets. comments, questions... concerns....... and by God, I am not suggesting that anyone run out do this. there are 4 certainties in life, death and taxes; and the both speed and options trading can both kill!!!!! It kind of gets back to the point of doing something exciting like the forward looking technologies that your company is working on; rather than shuffling paper... at this point computer vapors that is trading. John