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

To: Tom Trader who wrote (27523)	10/30/1997 6:36:00 PM
From: Muizz M. Kheraj	Read Replies (1) \| Respond to of 58727

<The funds that I have as margin for the puts that I sell are in a T-Bill with my broker, earning interest. I want to have the benefit of the upside in having positions in the stocks thru the calls that I buy without having my funds tied up in them.> Tom, Beautiful. I wish I had more money so I could actually apply some of the education I receive here to real money making. This would probably be a problem with an online broker. Because this type of position requires some explaining. Do you have a full-service broker, or a discount broker? Muizz

To: Tom Trader who wrote (27523)	10/30/1997 8:05:00 PM
From: Sundar Rajan	Read Replies (2) \| Respond to of 58727

Tom - thanks for all the good tips. I amlearning a lot from you, kevin, OJ, Ike, Brad and others. Hope I survive this sale of puts. I am willing to take a loss but not a 20point one at this stage. Also by nov 3rd week the market may resume its upward trend or atleast give me a chance to exit during the next rally. Also, what would you do if you have several long option positions 3 to 6 six months out. Would you sell and take the loss now or wait to see if the positions can be salvaged somewhat. I have IBM Jan 95's bought at a higher price and need IBM to go up to 108 or so? I am tempted to buy more now and average down. Similarly INTC Jan 90, 95's as well and CPQ Jan 70's. could you give me your EMAIL address please? mine is sundar_rajan@hotmail.com thanks.

To: Tom Trader who wrote (27523)	10/31/1997 10:52:00 AM
From: donald sew	Read Replies (3) \| Respond to of 58727

Tom, As I indicated yesterday, I am holding firm still with my contrarian position that the market will return to normal trading form very soon and that the market will not have to return to the 6950-7000 range to return to technical normality and to start its movement back up. Even though the market dipped more than I expected yesterday (50-75 points), I still noticed technical signals that normality is starting to return. The technicals are now in the lower mid-range with only a slight bias to the downside still. I realize that the market this morning was up strong and has retraced off the hights to being up 33 points on the DOW. If the DOW remains up for the day, depending how much, it may change the direction of the bias. I feel that the downside bottom is in the 7250-7300 range. At that time the market per my technical system will be oversold. Also I am not saying that it will get that low either just yet - that will be determined on a day by day basis, as the same way many traders use support lines being broken to determine such. I have also noticed thru my technicals that the downward pressure is losing strength. It is too early to tell, but I am wondering if we are starting to TRIANGULARLY OSCILLATE (PENDENT FORMATION). If that does happen then there will be a strong surge when/after the TRIANGLE narrows. If a TRIANGLE develops in the 6250-6500 range, I would presume that the surge upwards would start in the 6325-6425 range. As for the lenght of the TRIANGLE I would feel comfortable with about 7 trading days minimum before the surge. One last thing about a TRIANGLE is that the surge can be in either direction, but at this time I am taking the upside position. Again, it is too early to determine if the TRIANGLE will form. If the market gets to the 3250-3300 range, I will be loading up with calls at that time.