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

To: tntpal who wrote (17864)	6/18/2009 3:06:08 PM
From: SliderOnTheBlack	9 Recommendations Read Replies (2) \| Respond to of 50211

re: MFN... You can sell the Nov. '09 $7.50 PUT for a $1.70 premium. finance.yahoo.com Nice premium and you're above water down to $5.80 $7.50 - $1.70 = $5.80 Sadly no 2010 contracts, or 2011 LEAPs listed. One perspective to reiterate: I sold into HUI 370, and 400 and bought puts for insurance at both levels as well. Message 25660010 And stopped out down to a minimal core position on the pullback from 400 to 380-370. Message 25691461 It was a lot easier for me to put on a re-entry trade in front of the Treasury auction, or here today at a key technical pivot point, than if I rode the move all the way down. It's also a lot easier to do if you're making money on the correction via shorts, or puts added into strength as insurance. I mentioned yesterday - I never take off my shorts, or cash out puts bought as insurance until I get taken out of them by an upside rally. I got stopped out of the small trade I put on in front of the Treasury auction, but more than covered that stop out loss via letting my put insurance run. Here over the last couple days I've put on a little bigger re-entry trade at this key pivot point, but I'm still letting my (short) puts run, and I'm mainly "selling puts" as my initial re-entry trades. On the shares I have bought (AUY & SLW) I'm keeping tight stops and am primarially waiting for a pullback towards the bottom of the trading channel to put the majority of the money I took off the table - back to work. This 50% pullback is just the "beginning" of a re-entry trade, we could easily pull back to HUI 305-315ish, and if we do, still be within a bullish uptrend. So I'd be saving my main powder for re-tests of support at the bottom of the channel, as we've had all through this leg of the cycle. For those who didn't take profits into strength, or add puts, or shorts as insurance, and have taken a hit here. Don't chase. Don't double down trying to make your money back. When I've failed to take profits into a top and got whipsawed, rolling over with a move and giving back the majority, or even all of a move (and we all have). I generally only compounded my mistake and my losses, by trying to force trades in trying to catch a bottom. I learned this lesson VERY well back in old oilpatch days. And thanks to Mr. Market and some VERY painfull experiences, I finally learned to only buy strength and a clear technical reversal of the trend - after a major "giveback", or loss. For anyone who's rolled over into this correction, I would only add when the HUI, or GDX break out of this downward trend: Nothing wrong with waiting for the HUI to break out above 345, or the GDX above 39 to re-enter. Hope that helps, SOTB PS: GDX still hanging right on it's key pivot point and has't broken below 36.50.