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In a message dated 98-01-29 18:21:18 EST, you write:
<< Hi
this is just for education .
let say 1/29/98 you follow your support and ressistance levells for this
trading day
I got confused with this strategy can you be more clear of your plan.
R2 was 984.65
985.39
988.21
1.38 993.22 (spot)
when sp future hit your target in price you buy a june 990 future put
Do you mean to ExitLong position at target price?
in essence you are acomplishing 2 folds
A: you locked your proffit
If you ExitLong at your Target price the trade is Closed!
b: you can stay overnight if you wish (you have an insurance policy for
disaster
Insurance for what ? you already closed your position! Now if you didn't close
your position at your target then - a ) How did you mean you lock in profit ?
- b )
c: let say fri morning sp500 sell off to 985 . you sell put@ nice
proffit
If you sell your Put you might make profit on the option but your losing
Dollar for Dollar on your SP long ?
and enter secound sp500 long.
Even more confusing!
d: if sp500 close@xxxx at fri close.. (and it probably will not)
you close 2 sp500@xxxx
NICE 2 DAY WORK
YOU CAN HAVE A NICE WEEKEND
the same would work if you are short sp500 from 990 today but bought a
call
when sp500 was @ 980..
Perhaps I missed something can you please explain clear detail your plan when
you go long SP whwen you exit Long SP etc..
Good Trading
Mark
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