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

To: donald sew who wrote (6885)	10/21/1998 10:55:00 AM
From: Tom Trader	Read Replies (1) \| Respond to of 44573

>>Im glad the OEX is back in range for you Don, the surge to the upside and especially the strength that it was showing had me a little concerned given that I had the naked calls and also since I was on a buy signal; I had decided that if it looked like it was going to close strong I'd take some sort of protective action. When it sold off, I decided to short the puts instead since that would increase the range that the OEX could trade without getting me too concerned -- besides I think that the larger pull-back will be limited to 8100--8200 level. >>but with selling calls, I think it will do fine, with erosion. Now-- that's the truth!! Given that making money on the long side with OEX options is no easy exercise, it follow that the short side of the OEX options should be a winning proposition--if there is a method to the madness. >>Per our previous discussions, feel that they will be dip buying either today or tomorrow and the last runup before the bigger pullback<< I agree -- I am looking to go long the futures at the 1057-1060 level from a day trading stand-point. Do you have any sense of how low we might go as part of this bigger pull-back?? I am watching the BKX and if that breaks down badly, then the downside may be greater--otherwise my sense is that the downside is very unlikely to exceed the 8000 level--and more likely the 8100-8200 level.