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

To: Paul Kern who wrote (89952)	8/27/2009 11:12:58 AM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 94695

I bought a boat load at 4.73 and 4.74 this morning... GZ

To: Paul Kern who wrote (89952)	8/27/2009 12:04:29 PM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 94695

They are not supposed to have much premium. Put/call parity requires premium to be the same as for puts, which are trading at 0.01 bid/0.02 ask. You are bearing the risk of decline, on leverage, like with the futures. September C 4 calls don't have much time premium either, only 5c, so you capture 600% of the move higher if it moves up fast. Of course, in case it moves down, 600% will be in the other direction, as I just found out, cause I'm long those. I do it to reduce risk, actually, since the strike acts as an automatic stop if you hold the rest in cash. C is indeed on da move today. I think it's undervalued too, and so is whole XLF. P.S. They've been hiring some people lately.