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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?

To: Jan Johnstone who wrote (722)	10/27/1997 8:57:00 PM
From: Dave.S	Respond to of 1598

Jan: The purchase of a straddle on MLT sounds OK because the premiums and volatility are still low and MLT is still a slow mover so one can easily cover your positions. The trouble with TXO, OEX, and the DJIA is the very high cost of the straddle and one has to be very nimble to take profits. If one currently doesn't have any positions on, I would recommend sitting back until the dust settles. These are dangerous markets. Even though I had a nice position coming into today I found it exhausting and stressful watching the drop. None of the Pro's want to see a market crash - even those that are heavily short. After the 1987 crash the clients went away for 6 years and the years from 1988 to 1994 were very difficult ones for the MM's and the industry. This kind of market doesn't do anyone any good. I also completely hedged my MLT position this morning - I had no choice! Dave

To: Jan Johnstone who wrote (722)	10/28/1997 8:56:00 PM
From: Dave.S	Read Replies (1) \| Respond to of 1598

Jan: Looks like somebody else picked up on my NTL indicator. From the "Idea of the Day" thread: To: Bruce Tiemann (12995 ) From: randy kay Tuesday, Oct 28 1997 1:43PM EST Reply #13004 of 13056 Bruce - I have a tip about market movement. I watch Nortel (NT). This is a great company (I'm not in at the moment, will wait a little yet). If you follow this stock closely I swear it will indicate very short term future movement of the DOW (not the tech sector even though it's a tech, odd) Anyway, have a look at NT's chart last week and you will see exactly what I mean, it fell BEFORE everyting else did even though earnings were quite good (earnings were up). During the summer I made money flipping puts/calls on NT because it followed the DOW so closely, you just had to know where the DOW was going which was easy because it was making wild swings each day in a tight range so trading NT was like trading the DOW. Anyway, It's an interesting indicator. I picked up CPQ calls today, just couldn't stay away, I like everything about this company. BTW, glad to hear you didn't dump everything, the time for that would have been DOW 8200 when CNN had big crazy 8200 3D graphics and everyone was acting stupid, that was a top (not saying it's 'the' top). Randy