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

To: William H Huebl who wrote (17814)	5/2/1998 11:00:00 AM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 94695

Bill, I agree with you, as you know I learned it a wile back that buying option is playing against the casino. Chances are you lose at the end. It seems to me that this is lost on many players and SI participants. As they say "for every dead sucker 10 new are born" that is why WS traders are rich and we average mortals not, and Bonny Bear is buying the brokers to participate in the wealth, <ggg> oh well sort of <VBG>. Another way to play options are spreads and butterflyies, yes your upside is limited but so is your downside, yes you pay double the commission but you sell volatility, so share some of your dough with others. One strategy I would suggest is to sell spreads for out of the money option. Anticipating within reason that the market will not drop below or move above the first striking price. There are still good chances that you can bail out before. Selling spreads on both calls and puts are the most profitable even that there is no "free lunch" <VBG> But as stated many times before I prefer stocks and stock options not index option, as I am not so smart to figure the way an index will go and not so rich to mimic the index with a portfolio of 100 stocks, at least 200 shares each. Stocks at least have some boring fundamentls <gg> that you can use as a reference point BWDIK Haim As a side remark - you can get commission discounts on spreads DEMAND IT!! or tell the broker he loses your account!!