Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bilow who wrote (15843)	4/9/1998 12:08:00 AM
From: Marq Spencer	Read Replies (1) \| Respond to of 94695

A quick question. Do you know which additional day this weekend will the market be closed (Fri. or Mon.)? Also, if the move up tomorrow gets close to 1120 on the S&P, the 1065/1070 could be available for 2 1/2. Then a correction to 1040/1045 would be 10x, ... I think that's pretty good return for a few days :-).

To: Bilow who wrote (15843)	4/9/1998 12:44:00 AM
From: Marq Spencer	Read Replies (1) \| Respond to of 94695

You can get 10x-20x returns if the S&P falls to even 1040, or so, by setting up an April spread in Puts with strikes $5 apart for about 0.25 to 0.50. For example buy 1070 put at 5 3/4, write 1065 put at 5 1/4. If the index stays above 1070, you've lost 0.50, if it gets below 1065, you get $5.00 for 10x return. The difference between 1045 and 1040 Puts is a quarter for a 20x return, etc. If the S&P moves up 10-15 points tomorrow, you can even set these up at higher strike points. - Brian.