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 : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (1602)	9/13/1998 11:43:00 PM
From: Jane4IceCream	Read Replies (2) \| Respond to of 7247

Tim, Any thoughts on REXI? Looking pretty good to me, along with ABTE. Jane!

To: Tim Luke who wrote (1602)	9/14/1998 12:12:00 AM
From: Sandra	Read Replies (2) \| Respond to of 7247

Hi Tim, Interesting article dailynews.yahoo.com Sandra

To: Tim Luke who wrote (1602)	9/14/1998 12:33:00 AM
From: James F. Hopkins	Respond to of 7247

Tim; Have you ever looked at the Nasdaq100 options ? I'm not recommending them as I myself have never looked at them to speak of. I have recently done a study of major indexes, ( but not the options ) The reason I think I want to investigate the NAZ100 , is it seems easier to predict and often has a better move percentage wise, than the others. I give that to the mo mo effect of the "index arbitrage" players of the S&P500, as the 4 top stocks in the NAZ100 are also high up on the hog in the S&P500. In short the S&P500 top 50 stocks has 50% of the cap, and get bought & sold more by index funds, as they track the index. So that's 10% of the stocks controlling 50% of the index. With the S&P100 I think it's 15% controlling 50% of the index, But With the NAZ100 it's 4% of the stocks controlling 50% of the index the top 4 in the NAZ100 make up over 50% of the cap. With only 4 stocks to check on , predicting that index is a cake walk. Not that I can do it all the time, but when I can't call it I can see that I can't, however when them four do give a signal it's a good one. ------------------ I suspect when the VIX is high as it has been lately that premiums on those options will also be high, and that may make trading them not very profitable. However I'm rolling around in my mind a program trading strategy that works them like the S&P arb players do with the spoos. Ie when are the 4 top stocks cheaper to own than the NAZ100 calls, or the calls cheaper to own than the stocks. The idea of only having to work 4 stocks appeals to me. MSFT , INTC , CSCO & DELL Make up 54.18% of the Nasdaq100 as of 8/28/98. There may be a way to form a plan around these 4 , were cathing a dip with an up signal one legs into the stocks "weighted" then works the index options aginst them depending on the premium. Jim

To: Tim Luke who wrote (1602)	9/14/1998 8:10:00 AM
From: Dave Shares	Read Replies (1) \| Respond to of 7247

CPQ I hope you don't mind if I play contrarian here. I have not traded CPQ in quite a while, and I agree that it is a great position trade. With earnings season approaching, I would not be surprised if the company warns, as others have posted about price cuts, shipments not being as high as expected, etc. I was also surprised that the stock did not participate in Friday's rally. I hope I am wrong for the sake of the longs, and believe me, I am wrong quite a bit. But if a warning comes out, I don't want to be holding when that happens. Stock may very well see 35 before that happens. I would take the profits and wait for warning season to end. David