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

To: fred woodall who wrote (90709)	10/21/2009 10:58:04 AM
From: GROUND ZERO™	3 Recommendations Respond to of 94695

I know exactly what you're saying, I think your sentiment is very popular these days, I feel the same way, especially with the way these markets have rallied as they have since March... so, there are two or three ways to play it and sleep better, I use all of these strategies on occasion depending on market conditions at the time... One way is to hold a lighter position, this way you could always add on any serious sell off if it happens... another way is to keep your positions and write calls against them, this will give you some breathing room in case we hit an air pocket, but then, as a trade off, you would also minimize your upside gains... I wouldn't go out any further than maybe two or three months and write just out of the money calls... or you could simply hold you positions and place a stop very far below the market as a catastrophic stop, just in case... Personally, I like writing calls for protection and give up the big bang for the buck, it just feels safer and in case the market goes nowhere, I'll still take in some profits... I'm certainly not a guru of any sort, but these are my own personal trading choices and I take advantage of each of these choices according to the market condition at the time... GZ