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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (34730)	10/28/1998 7:06:00 PM
From: accountclosed	Read Replies (2) \| Respond to of 132070

Thanks for the private answer. A great series of questions and answers this evening on the thread. Started off by tippet's excellent question. I understand that you have an options trader's mentality and can perform these mental gymnastics on combinations much more quickly than most of us. Can you clarify again for us, how on straight speculative options positions, like long puts, how you chuck Black-Scholes and just get the direction of the stock right? It seems like a leap of faith to me, especially during times like the last month when implied (and actual!) volatilites are so high. Thanks, Paul

To: Knighty Tin who wrote (34730)	10/28/1998 7:23:00 PM
From: accountclosed	Read Replies (1) \| Respond to of 132070

Mike, I have traded options only a little. I feel like I need to reread McMillan and/or Natenberg, etc. Do you have a suggestion there? With this grossly overvalued market, and the specter of even undervalued stocks being hurt in a market downturn, I feel pressure to head towards options. Does that make any sense? Should options make up a bigger part of one's thinking in certain market conditions? Sorry I have so many questions, but one more. Is it not a strange dichotomy that there is widening spreads in the bond market --> flight to quality...And yet stocks (especially nasdaq and small caps) are soaring here --> flight to speculative investments. Like the market is saying "I can't stand the risk of an AT&T bond, so give me MU"