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Strategies & Market Trends : Book: Hit And Run Trading by Jeff Cooper -- Ignore unavailable to you. Want to Upgrade?

To: rocklobster who wrote (107)	1/29/1998 9:25:00 PM
From: Darth Trader	Read Replies (2) \| Respond to of 438

Richard, I've learned to go with the trend, nothing can be more nerve-wracking (or unprofitable) than getting beat up in a choppy market. On trendless days it is best to sit it out. I don't have L2 yet, Time of sales (TOS) are important, IMO. If you have an ordinary bid/ask last sale and volume, some trades do not show up, ie. a trade may come across as 100,000 shares at 99 1/2 and then immediately 10,000 shares at 99 7/16, the 100k transaction may not even show up on your screen, and if it did you probably would have missed it! If it sounds like somebody was trying to hide something from you you're right! Today I rode DELL for over three points, I knew it had legs because of the size of the blocks and volume. quote.yahoo.com Hope this helps, as the following link suggests, I am far from an expert at this business! Message 3194013

To: rocklobster who wrote (107)	2/5/1998 1:00:00 AM
From: James F. Hopkins	Respond to of 438

Jeff; I got a friend who is a broker and he has convinced me that stop losses are for suckers. If you put a limit it can run right by you , if you don't you most often get what it stops at. -------------------- If your worried about a stock, buy it and short it against the book, and sell puts..if it gets put to you you keep the prem. and it closes the short..and you make the down side. Play safe buy calls with the put money you got, at least your hedged, if it goes up buy the cheaper puts back and roll up selling more expensive ones.. You own the stock, and you don't.. as your always short on what you own. Try to play only stocks that have options and look to see if the time premium on the puts is slightly more than the calls. You are also buying and selling "time" the more you buy at a clip ( more out in time ) the cheaper the rate is per month..sell it in short chunks. First month or so it don't look like your coming out, as the longer calls cost more but you sell puts month after month. ----------------- In the case were the stock falls you lose value on the calls, if they are out some they wont lose value as fast in respect to the stock, the closer in the more they track the price, so if it goes down and your short closes you roll your calls down or just get out of them what you can, and if you crunched the numbers and had a good plan you make more or at least as much on the down side of the stock than you lose on the calls, if it climbs you keep the put money or roll it up..and your calls become more valuable, to offset what you lose by holding it short, the key is to make money off selling puts. In some cases If I want a stock, but want it cheaper..I sell puts and don't buy it, if she drops and gets put to me I also have the put premium to help pay for the stock, if you sell in the money puts she don't even have to drop..as at ex date if you dont buy them back, she gets put to you, but the prem is yours to help pay for the stock. In short you go long on the stock when you sell puts, ( you have to have the dough in your account to pick her up if need be..but that dough is making interest at MM rates. Soon as you get her short and sell put, and buy call. If the options are right you can buy call, short aginst the call, and sell puts..and never have to own the stock. But shorting what you already own you don't have the broker telling you he can't find stock to lend you..as you lend it to yourself. Set your targets don't just fire off shots in the wilderness, ( crunch numbers till your blue in the face ) and hunt for options that play in your favor, which ever way you want to go. The only stocks I play without options are penny stocks. or baskets like SPY, MDY, DIA..options with them are not worth fooling with and seem to cost to much to me. Jim