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Patrick Slevin wrote:
>
> My habit is to buy "near-the-money" options on indices. It has aways seemed to be more
> conservative, as premium does not erode as fast---that is to say, if I am incorrect, I
> can limit my loss to a resonable percentage of the original investment.
>
> I am sure better profits may be made with "out-of-the-money", but in my view it entails
> more risk.
>
> One broker I use is E.D.&F. Man in Chicago. I'm not certain, but I believe they once
> told me they would take stops on options.
>
> --PJS
>
> Michael Mangiafico wrote:
>
> > What I do is seek out major opportunities using only classic
> > formations, major breaks, from all 600 charts maybe I will trade 5-10
> > major's, and with that I have done quite well. Please take a look if
> > you like.
> >
>
> > If any in the group are going to short an index or stock--what is the
> > best way???? I want to mirror (delta--1) the movement of the index or
> > stock I am shorting, because my analysis is done off of that chart.
> >
> > I am interested in selling stock short, is that a better route?
> > For indices, should I buy puts in the money or out of the money?
> > Because I am in many issues, does anyone know of a broker that will take
> > stop/loss orders for short sells and or options??? I am away from the
> > office a lot and need to protect profits/losses.
> >
> > Any and all help would be appreciated. thanks very much.
> >
> > Regards,
> > Michael Mangiafico
Patrick Slevin wrote:
I am sure better profits my be made with "out of the money",but in my
view it entails more risk.
Joe Frabosilio writes:
For me "Out of the Money", is what I call the Whisper of Death. My past
exp. with out of the money is always a loss. I also very seldom buy at
the money.
The key for me is always "in the money". I don't care what it cost.
Example: last week 3M was bucking the trend, dow was down. 3M had good
earnings it was up 3 at the time. I bought 3 contracts of the MMMAS Jan
95c. I was filled at 7 1/4, I put a limit in at 8 1/4, 3 hours later it
was filled.
I've been able to get in and out a lot faster with "in the money" than
anything else.
Good Trading
Joe Frabosilio
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