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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: y2kate who wrote (87594)	5/28/2009 9:59:46 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

Yes, deep OOM calls in a crash situation often move ... down as the market moves higher as volatility crashes! I avoid 'em like a plague. And deep ITM calls are a futures contract without a margin call, so that's exactly the long options play in a crash that stopped crashing. Of course, you never know if it did.. for sure... But that's the trading part, not the options part. -g-

To: y2kate who wrote (87594)	5/28/2009 10:06:17 PM
From: 2doll	Read Replies (1) \| Respond to of 94695

Interesting - lately I've had pretty good success buying front, slightly oom on a trend breakout. Do you play the ETF's or stocks only? Kim

To: y2kate who wrote (87594)	5/29/2009 5:21:36 AM
From: Real Man	Respond to of 94695

Well, you can buy puts on bear ETFs in situation of declining volatility and sharply rising prices... -g-

To: y2kate who wrote (87594)	5/29/2009 6:39:40 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

The thing I actually did this March when I got boolish on stocks... Instead of going for the calls, I went picking up individual shorted trash stocks. Many of those ran like call options, but no time premium. I really hate OOM calls when volatility is high. However, I really don't like the trash any more at this point of the rally. The garbage picking time has passed. The bears are already dead. I am actually looking at the dark side of that trade, but not biting yet. It's still trash, the Co-s are still technically insolvent, but some of them became multi-baggers