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For those who may be interested in trading leaps (long-term equity calls)
averaging down, please note the following.
The amak crossover indicator on 90-min chart on INTC gave me an initual buy
signal at 117.375 this afternoon.
I bought 10 contracts of LNL AN (INTC JAN2000 170 call) at 6.375 when stock
was at 118.250. (Unfortunately, my fault, I fiddled around with something
else when the buy signal was triggered.)
The averaging down buy signal will be when INTC goes down to 112.125, at
which time I would be buying 4 times the contracts I bought today. (No
more buy after that.)
There is no guarantee that INTC will go that low, or if it goes that low,
it will not continue to plunge.
Time will tell how the whole thing works out eventually - whether I lose
all, breakeven or make lots of money.
Regards,
Wong
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