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

To: Lee Lichterman III who wrote (52449)	9/13/1998 4:39:00 AM
From: MonsieurGonzo	Respond to of 58727

Lee; RE:" trading bias " >prefer to play the waves downward... safer in this environment oh yes, Lee - that is sage advice for me and everyone else. The (long) exits are easier to see coming than the (long) entry-points when the medium-term Trend is Down. IMHO this is exactly opposite of BullMarket trading, where an elegant exit is more difficult to achieve with finesse. Near the top of the apparent trading-range channel, a 2:1 Bearish Ratio BackSpread has more probability of making large leveraged gains, than does a 2:1 Bullish Ratio BackSpread have of making leveraged gains upon a hoped-for bounce UP from some perceived support bottom : because the bitch could just plain break-down and plunge down there on that tight-rope. Takes courage to flip rather than just go flat down there (like late Thursday afternoon, early Friday morning)... hoo-boy ! Still, 1:1 Long Straddles at either top or bottom of these apparent "waves" have the highest probability of all to make money - with respect to risk - given the extent of the moves (in either direction) so long as this volatility persists. -Steve