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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (6122)	10/12/1998 12:47:00 PM
From: Tom Trader	Read Replies (1) \| Respond to of 44573

>>For me, I would have to leg into selling calls; for example buying the 520s when the market is down waiting for the opportunity to sell the 495s when the market is up; vice versa for the puts.<< I guess that I do the Bev approach except that I write the options; she buys puts when the market rallies strongly and buys calls when it goes down a lot. I write calls on strength--and would not look to protect the position unless things look like they are getting out of hand. Once I have a position in place, I might buy calls at a higher strike if the market drops and that way safe-guard my position. I do scale into the position when I am taking a position contra-trend for obvious reasons. Much depends on what ones expectation is when it comes to where the market is headed. We have rallied almost 90 points since the spoo made its low on Thursday. Is the environment such that we could rally another 50 points at this juncture? Anyway, the premiums have dropped and I am not going to get my price on the 495s so--unless we rally quite a bit from here so I have switched to the 500 strike. Looks like I have a fair amount to get done re this winterizing stuff -- so far sealing the drive way is the only thing that has been taken care of--and that because some one who was sealing a neighbor's driveway came by and said that he'd give me a good deal if I agreed to have mine done at the same time -- don't know whether I got a good deal but it got done.