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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: waverider who wrote (2226)	8/27/1998 9:39:00 PM
From: Thean	Read Replies (1) \| Respond to of 14427

Since everyone is in such a jolly good mood today as reflected by the explosion of this thread, I have a few random thoughts on LT. LT is a roman who arrives too early. LT used to arrive in a Harley but no more. He arrives in a golf cart with a pistol. LT likes to be naked because he is a star gazer. It's not BK anymore, it's LT from now on. Let's do LT again tomorrow. Papaya - shame on you. You owe it to your subjects to raise their stocks. Buy papaya plots, not coffee. For investment, absolutely. There are at least half a dozen ways to market and sell papaya to the American consumers who have not discovered the taste of papaya yet. You size up your plots and we will talk strategy. I will consider doing 50:50 this time. Diamond - I would not trade option like trading stock. If it works for you, fine. I wouldn't do it. Option takes more research and anticipation. If it does not get there and reverses intraday, it does not mean it won't get there in the next few days. A good advice I got from a friend - don't be afraid to milk the time you have paid for. There is no convenient way to set stop. Therefore, I rely a lot on anticipation and use contrarian approach - buy when the trend appears tired, sell when the reversed trend goes full steam. If surprises (like no reversal or shallow reversal) happen, I may wait for the next cycle so long as I think it can accomplish my objective within the life of the option. Support and resistence levels need to be first identified, espcially for option. For long term option, it is best used for buy and hold when a long trend is operating (like drillers). LT's options are mostly long term because he is betting on a trend that may take its time to form. Short term options (1-2 months out) are what I primarily use for intermediate holding period. My holding period for options are generally weeks, not days, unless it is days like today where one gets 200% return within hours. It does not happen most of the time! Also, option commissions are alot steeper than stocks. If your broker becomes richer than you from all your option trades, you know your system is not good enough. In addition, options are not as liquid as stocks. That's why day traders trade stocks and not options because they have more control. Big names like INTC and CCI have very liquid option. But not for KRB, AFS, etc. Therefore, expect to pay big spread and expect difficulty in getting filled between the spread. What's going to happen tomorrow? Being fresh from breaking support all over and a Friday, I would inclined towards a continued selloff. Any intraday rally can be used as opportunities to reshort or put. But I would watch the support and resistence of all stocks and options and the indeces. Funny things can happen and the fund managers are holding on loads of cash. Where you think they are going to put them? In the bank? Therefore, any sign of stabilization can trigger a powerful rally - enough to wipe out your options in no time and send shorts scrambling to cover. Think risk and reward. If you do put option, you should accept the max risk of losing it all. If your reward potential is worse than the money you paid to buy the option, forget it.