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


To: Electric who wrote (33470)1/17/1998 5:25:00 PM
From: ViperChick Secret Agent 006.9  Read Replies (2) | Respond to of 58727
 
E.

These days you have to take baby steps to get anything across to me
So let me think about this:

"I am saying that the first group of numbers (the index positions that are nearest to
the current number) are all traded by every you know who that index trades, for the
main reason you stated, they are reasonably priced. And these positions are the
ones that are undervalued and how can I say it "stripped" by the MM's and
manipulated. So if you get into one of these you are likely to see continual
undervalument,manipulation and lack of point for point movemment. "

what about the discussion we were having about trading these versus the overvalued ones?

what has changed your minds and have you been watching this happen

" If you move to the points outside of the current index trading points, they are more
correctly priced, they are overvalued and arent manipulated. Yes they cost more,
but you get the correct valuation and movement."

I dont follow your thinking here...why do you say they arent manipulated....that you can get correct valuation. If they are overvalued by 2 ...1 can easily be stripped away

I guess I am trying to figure out the foundation for your argument and after that ...how have you seen it work.
Why are overvalued ones manipulated less than undervalued ones.
The only thing I can understand about it is the concept that the herd might go to the undervalued ones and thus the MM's would try to manipulate the more.... the average guy goes to the ones with low dollar premium when he buys 10 contracts.

I am just having problems understanding how an overvalued option is the advantage.



"On TBR, I have been yelling all week"

Sigh....

Sometimes I just have to be hit over the head


"at you to take a look, we both know that
TBR isnt going to stay at 100, in fact earlier this last week I charted it, it first fell to
about 100, then bounced back up to 105-108."

" It is another IBM, only with much
fatter premiums due to the beta of the stock."

well this is great if you are selling calls or puts like Kevin,,,but I have to buy...so not so good and leads to more ability to strip

" Trading nicely within a range, look at
the recent chart.
If you plan on entering in (I am looking myself) tell me and do it in a message to me
so I get it, and I will tell you how the premies are acting. I like channelling and TBR
is, so lets make some $$$$ Lisa, NO????"

Yeah electric I am game

Yell at me if you see IBM or TBR get to one end of the channel please.