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 : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: robin 187 who wrote (50043)	8/17/1998 9:29:00 AM
From: Nemer	Respond to of 58727

Robin : The best advice I can give you is to buy Larry McMillian's books. If you don't understand what Lisa said, and I see that you don't, ---- get Larry's books. While they won't salvage you immediately, he has the best repair techinques which are relatively easy to understand and to implement. What Pat meant, I'm sure, was that he didn't know "your" situation, not how many option contracts...... your risk tolerance, your financial situation, past profits which can make a loss less painful ,,,, etc. Everyone here on TSO has been through what you're going through right now ...... and it IS painful. There are lots and lots of good books out there, and as you have just seen Pat post ----- and he's been at this a looooonnnngggg time and with substantial amounts of money ----- and he's still reading and learning...... for no matter how good you get, you can always profit from reading. McMillian just happens to be one of my favorites because it's easy to understand and very powerful repairs for a losing trade ...... Good luck ..... Regards ---- Nemer

To: robin 187 who wrote (50043)	8/17/1998 9:35:00 AM
From: ViperChick Secret Agent 006.9	Read Replies (2) \| Respond to of 58727

<<< Patrick you said that you didn't have all the facts so you can't really give advice well I have to admit I wasn't being exactly truthful about the number of options I bought. I was embarrased by how risky I was being by buying the number that I did and didn't want to say >>>>>>> ROFLMAO not at you but at the fact that more than one person on this thread has been in that situation... welcome to options anonymous and I have a therapy couch just for you ...we know your pain ;-) DONT BE EMBARASSED.......besides none of us know who you are anyway...LOL what a turnaround in the futures.... will be an interesting day we have seen big drops in Globex..turnaround in the morning..only to tank like a rock later...be careful.. to answer your question about the horizontal time spread you sell one month against the month you have..same strike this is a covered spread and allows you to play the fluctuation of let's say the AUG call..while holding your sept... go to www.equityanalytics.com if you want to learn more about option spreads and other misc things From Ike on Idea thread: Today, I would expect the market to be very volatile. I wish I could say that there will be a 500 point drop in Dow; looking at the charts now I can always follow the market and talk about huge bearish approach, but this is not what my indicators tell me. Consistency is one thing which my model maintains and it is only the macro-economic conditions of the US - if they start changing and bonds start telling me something else, I will have a different view. With Treasury now settling at 5.51, equity markets and dollar assets can only be helped. Even if there is a huge fluctuation, I will be long at supports like 1030, or even lower at 1018 (if it ever comes to that which I doubt). This kind of extreme pessimism can result into wild fluctuations but these are unsustainable.

To: robin 187 who wrote (50043)	8/17/1998 9:51:00 AM
From: Grashopper	Respond to of 58727

Sh-t happens but the best thing you can do is keep posting and talking. Remrmber things change! It was my losses as a trial lawyer that made me wise and better, my early victories only made me arrogant and vulnerable till i got my head handed to me a few times. If we dont wilt defeat makes us better. As my beloved wife says money can be replaced but not your health. You are not alone some pretty smart people inc me have huge losses this year. You have a wasting asset that will dissipaye on a certain so dont be afraid to salvage what you can rather then just watch it go to zero. I wish i had listened to what i am telling you. The last advice i can give is no more calls as there not for everybody inc me..just buy the stock.

To: robin 187 who wrote (50043)	8/17/1998 10:58:00 AM
From: Patrick Slevin	Respond to of 58727

DELL options I was not concerned about what your entire position was, I just tried to grasp what you paid for the calls and with a 30-lot it sounded like it would have been around 20 bucks or more which, to my way of thinking, was pretty expensive. Like Nemer mentioned, a lot has to do with your own risk tolerance and personal situation. There are a lot of damage control techniques but at this point in the game I will tell you what I think the smart move is. It is always cut and run. Like you said before, it's always better to start out bullet-ridden instead of bulletproof. When you start out bulletproof it's always harder to admit you are in a bad trade. Not that it is easy at any point. I will say this, I think a temporary inflow of offshore money may rally this market for a week or so. So if you wish to chance it the price may improve a small bit. But look for premium to start getting yanked off the calls even if DELL rallies somewhat, as Sept becomes the front month shortly. Not to sound like a pedantic, I cannot stress enough that risk management is key in any trade and options are trickier than stocks. So if you have a loser and it exceeds your planned risk for a loss or exceeds downside expectations in general I would kick it out. Just my opinion.