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.

Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Matthew L. Jones who wrote (9332)	2/27/1999 6:35:00 PM
From: AlienTech	Read Replies (1) \| Respond to of 43080

>>When you say spiders, do you mean S&P depository receipts (SPY)? In other words, if the market goes south, short spyders? << No. I mean the sector spiders. the XL's... amex.com They trade just like stocks, Except you can short on a downtick which is great for Jay cause he keeps getting stuck for 9 shares, which is a problem I also have but on the long side. >>and buy puts on say INTC and AMD. If you bought one strike out of he money, your expense would be maybe 1.5-2% of the market price (if the stock was selling at $100, the option might be $2). Your maximum downside would be $2 << You havent played options very much, At a minimum, The options cost 10% of the value of the stock. Sometimes a lot more. Inty stock options cost as much as 25%. This are for at or near the money. But even for way out of the money a $100 stock will have options worth $2 if the options was like $80 put or $120 call expiring in a month or so if they are very volatile.. The March INTC 110 put is going for almost $2 now. But the stock has to to fall another 10 points. Now that I am looking at the premiums on options, I see that the calls are worth more than the puts. wutsaheck. The MAR 120 calls, ask is 6. the MAR 120 PUT is 5 5/8. With the stock at 120. edreyfus.com But look at AMAT, MAR 55 call's are 5 and MAR 55 puts are 4. edreyfus.com