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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (51731)	9/7/1998 7:48:00 PM
From: MonsieurGonzo	Read Replies (1) \| Respond to of 58727

Beeblebrox; RE:" AMZN " hmmmm... a morning star on the chart, ending in a doji on Friday. I'd use a CALL Ratio BackSpread, Beeble - you're unlimited on the up-side, and make some money on the down-side (personally, I think it will bounce UP). OTOH, use a PUT Ratio BackSpread - unlimited profits on the downside, make some money if it runs away from you - if you really think AMZN is gonna tank. AMZN is a momentum trader's stock, IMHO. Most folks catch the train (in whatever direction) and put in a trailing STOP, say, 1-3/8 points away or something, and ride it along. If you do this with options, I recommend that you use at-the-money strikes, watch it like a BeebleHawk, and employ trailing STOPs. They're fun to ride, Beeble, that's for sure (^_^) The internet sector is highly inter-correlated, Beeble; you can play (or hedge a play of some component) with IIX.X or INX.X sector indices. I believe (somebody clarify this) most pros "buy the index, and short the stock". Over the last 20 days... CNWK -10% YHOO -18% LCOS -21% AOL -23% AMZN -26% SEEK -32% XCIT -44% -Steve