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.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (19810)	9/2/1998 6:57:00 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

Look at Globex today-- when it should be trading higher it is lower, the reason being Globex in last few weeks have been quite a contrary indicator it does trap lot of people and probably the trade on globex would be long not short, if market opens soft we certainly go and test the first resistance at 7908-- yesterday when it was trading higher nearly 25 points I made the observation about a trade around 955-960 area and referred to 7500 a very strong support-- in my opinion I will like to think that 970 area is now the support, moreover we will like to face first resistance at 7908 we had difficulty breaking this downwards took a lot of softening effort- once we broke that we were down quite a bit it was this simple level I synchronised my puts at 996-- Today I will watch the action around 7908 very closely, if we take that out we go and close above 8000-- if not and we fail for a trade we can use this resistance as a small point ot make money on the downside-- I will like to be long at supports like 964--978 area and will short around 7908 if the idea is to buy puts nothing is better to buy some Oct at these levels--- it will not take off on first attempt but afternnon the second attempt may just do it- so you will have some leeway to play. I will like to close out my SOX/DDX naked puts and let the long call at 210 and 110 run-- it was a good trade-- so was 45 put on TXN would like to take out the put as premiums will dry, on long side I will stay with SOX until 190 is taken out, but I see a great run possible here, BKX long calls still look nice for Dec... I would think that some of the earnings will surprise many a bears-- in France the few I follow have been quite satisfactory...... One needs to be quite nimble here, trading is only good and levels are only good if one can translate them in to bottom lines..

To: IQBAL LATIF who wrote (19810)	9/2/1998 7:15:00 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

Leverage the only way to go about in the markets- for small investors. Suppose you are looking at a 20% drop in present prices whereas Abby thinks we go back to where we were, now you need to play a game that you are in the market but if the drop comes take the stocks at much lower level-- A small investor with 50,000 $ may look at this strategy-- Instead of buying the stocks now-- He sell 20% out of the money puts like say COMs 20 puts for March-99 and buy 30 calls for March 99-- now if he sells 10 puts he will be required to buy COMs at 20 -- that is investment of 20,000 $-- from fifty he can allocate all his fifty in any of the stocks which he thinks will do well-- like SEG HTCH QNTM to name few or even CA EFII or TSEMF-- Once you are locked in if market moves up-- you will make money on the puts as well calls as put premiums disappear and call premiums multiply- now what is the risk here-- If market crashes you would need to buy or take delivery of the stock the puts you have sold-- I would think like I thought yesterday COMs at 20 or TXN at 39 is a bargain-- you are in the play but at 20% lower.. Good if Abby is right and I think she is right ( People have been short since Oct- I think it is like may be up may be down and may be nowhere kind of people) Abby makes a far better case than anyone else on markets, forget about voodoo perpetual shorts, you will be in the market from lows and still enjoy.. Now to top it off you may see we are at 250 on SOX or 125 on DDX as we get in the earning season, what happens next we go and buy one SOX put to protect our profits, or even if you are afraid to place the position you can buy a put covering 33,000 $ worth of stocks and hesge your downside in case of a crakck below 950 on SPY-- it is not about rambling levels it is about converting these thoughts into $'s this is one of my favorite strategy for people like my friends who want to risk very little- I tell them go ahead and play-- play you should when markets are screaming buys-- I read today that WSJ reporter was informed of a hedge fund who refused to take in funds due to lack of opportunities asking for some money for very exciting oportunities..Hedge Funds are very weary of size they are careful not to take money as results are dependent on funds employed, I will like to think that these combinations are bread and butter stuff for a professional investor if you are spending time to research spend some time to leverage, that is the way to grow your assets.. IKe