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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Steve Hufnagle who wrote (21484)	11/17/1998 7:51:00 PM
From: clutterer	Respond to of 50167

biz.yahoo.com

To: Steve Hufnagle who wrote (21484)	11/18/1998 3:51:00 AM
From: IQBAL LATIF	Respond to of 50167

Keep a stop profit at 65- and let this run- sell some covered calls at 80 and buy 65 puts-- so that you are covered if it runs to 80 youe stock is taken away only above 80 and if it drops below 65 you are hedged that is what I do when I think we are going to go thru rough patch or a correction.... I try to trade big moves but I will never get out of my long term positions they help me keep me in the game as during down turns I have to protect their falling values so I am aggresively buying puts and once the market returns back all my trading profits become the extra icing.. so one needs to be very careful for someone like a US resident getting out of stock would practically mean you should only break even if we have 30% correction as Uncle Sam takes away quite a bit as a tax..so exiting is easy but try to make it most profitable..covered call writing is a good example how a passive investor should work... however I will only do it if I see severe weakness in NDX, rather I would cover my naked calls at 1390 if it iever reaches there and also my cover my long puts and still will be with the stock.. For this one needs to go out and sell Jan calls and buy Dec puts get more in and pay less out- calender spread so as to take advantage of a downturn which we expect as averages need to be tested and cover your long put also your call and be back in the game as NDX comes back up.. it sounds slightly comlicated but that is the only way one can increase its returns on investments..without being too aggressive.thanks Sir--take care.