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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: William H Huebl who wrote (31513)10/14/1998 7:27:00 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 94695
 
Example:

Stock is at 65

Oct 55 call is bid at 9 3/4 asked 10 1/8
Oct 75 put is bid at 10 1/4 asked 10 1/2

This shows trend down. I found that this reading is effective for about 7 to 3 trading days before expiration. Those spread indicate were the stock is anticipated to open next day, and it is effective after 3:30 in the afternoon. So you may be able to place positions.

After the market closes it is to late but may indicate future movements. It is also worthwhile to check it during the day. In combination with TA it usually works.

Today it did not worked for me as I did not act by 10 AM, therefore instead of $600 in profits from yesterday, I paid $800 in losses for the mistake.

Haim