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

To: donald sew who wrote (27367)	10/29/1997 5:15:00 PM
From: Tom Trader	Read Replies (1) \| Respond to of 58727

Don -- keep us informed of what your indicators are saying As for my approach--I shall follow the course that I said that I was going to adopt. Buy stocks as they retrace towards their lows of Tuesday--I will establish synthetics from 4 months to 1 year out by selling puts---at strikes that I would be comfortable owning the stock---and buying calls at the next strike up. I will also buy index puts to protect my positions--in fact, I bought December OEX puts today when the DOW moved over 7600--I indicated yesterday to Kevin that I viewed 7400 and 7600 to be resistance. This is not a trading position but is intended to protect long positions that I initiate in equities. As far as my outlook for the market--I think that there is too much complacency and that is not what makes for a good bottoms. I think that the market will be held at the 7700 level and will retrace most of yesterday's gains over the next two weeks--and that is when I hope to establish long equity positions thru limit orders. I am not sure what will take the market down again -- though I suspect that it will be more of the same with problems in SE Asia as well as this time in Latin America, which has begun facing an attack on its currencies. All this is admittedly just speculation--but as you know I think that sentiment is all important at good bottoms--and we are not there.