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<DIV><FONT color=#000000 face="Comic Sans MS" size=2>Could someone who is really
good with options tell me what is wrong with this option strategy
!!!!!</FONT></DIV>
<DIV><FONT color=#000000 face="Comic Sans MS" size=2></FONT> </DIV>
<DIV><FONT color=#000000 face="Comic Sans MS" size=2>This is a Bull call
spread</FONT></DIV>
<DIV><FONT color=#000000 face="Comic Sans MS" size=2></FONT> </DIV>
<DIV><FONT color=#000000 face="Comic Sans MS" size=2> Underlying: CITIGROUP
INC. (C) Price: 65.9375 Chg:
1.9375<BR>
Bid: 0 Ask: 0 Vol: 12483400<BR>BUY 1 Jan2000 70c (LVRAN)
Bid: 45.625 Ask: 46.625 Vol: 0 OI: 86<BR>SELL 1 Jan2000 130c (LTYAF) Bid:
46.25 Ask: 46.75 Vol: 0 OI: 665<BR>Risk: 0.375 Reward: 59.625
Breakeven: 70.375<BR></FONT></DIV>
<DIV><FONT color=#000000 face="Comic Sans MS" size=2></FONT> </DIV>
<DIV><FONT color=#000000 face="Comic Sans MS" size=2>Look at the risk return.
</FONT></DIV>
<DIV><FONT color=#000000 face="Comic Sans MS" size=2>Anyone with OptionVue or
OptionStation please check this out.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face="Comic Sans MS" size=2>If this is not wrong, please delete this
trade from your e-mail ASAP !!! HA HA HA !!!!!!</FONT></DIV>
<DIV><FONT face="Comic Sans MS" size=2></FONT> </DIV>
<DIV><FONT face="Comic Sans MS" size=2>Thanks</FONT></DIV>
<DIV><FONT face="Comic Sans MS" size=2>Rob</FONT></DIV></BODY></HTML>
</x-html>From ???@??? Fri Mar 12 04:51:49 1999
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From: r slupsky <zzorro@xxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Re: Am I insane !!!!!!!!
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S&P 500 wrote:
<blockquote TYPE=CITE> <font face="Comic Sans MS"><font color="#000000"><font size=-1>Could
someone who is really good with options tell me what is wrong with this
option strategy !!!!!</font></font></font> <font face="Comic Sans MS"><font color="#000000"><font size=-1>This
is a Bull call spread</font></font></font> <font face="Comic Sans MS"><font color="#000000"><font size=-1> Underlying:
CITIGROUP INC. (C) Price: 65.9375 Chg: 1.9375</font></font></font>
<br><font face="Comic Sans MS"><font color="#000000"><font size=-1>
Bid: 0 Ask: 0 Vol: 12483400</font></font></font>
<br><font face="Comic Sans MS"><font color="#000000"><font size=-1>BUY
1 Jan2000 70c (LVRAN) Bid: 45.625 Ask: 46.625 Vol: 0 OI: 86</font></font></font>
<br><font face="Comic Sans MS"><font color="#000000"><font size=-1>SELL
1 Jan2000 130c (LTYAF) Bid: 46.25 Ask: 46.75 Vol: 0 OI: 665</font></font></font>
<br><font face="Comic Sans MS"><font color="#000000"><font size=-1>Risk:
0.375 Reward: 59.625 Breakeven: 70.375</font></font></font></blockquote>
<p><br>I have the Jan 70c at 7 1/2 pts. Why do you want to sell a
130 c even if you could? The commission is probably more than
the premium and that is even if someone would take the other side.
Your quotes are incorrect. Why would the premiums be the same?
Do you understand what you are trying to do and why?
<p>ramon
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</x-html>From ???@??? Fri Mar 12 05:35:01 1999
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From: Bob Hunt <RHunt.066@xxxxxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: T-Bond Day Trading for Friday, March 12
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T-BOND DAY TRADING FOR FRIDAY, MARCH 12
released 6:30AM CT, 3/12/99
-----------------------------------------------------------
Support, Resistance, and System Signals
USM9
R3 122 16/32
R2 121 31/32
R1 121 15/32
DP 120 29/32
S1 120 13/32
S2 119 27/32
S3 119 11/32
Today is a 2 Day ROC BUY day - Look for intraday signals to go long
MONITOR FOR HOLY GRAIL SETUPS! If the 5/15/30/60 or 120 min ADX>30
then look to trade the bounce against that period's 20EMA with the
last intraday swing pivot extreme as the target.
Watch for OOPS! Trade - If O < YL then buy YL on a stop.
-----------------------------------------------------------
Commentary
Yesterday started off looking bearish with a slow move away from the
DP. But as the early morning reports were being released, the market
took off skyward with a very impressive thrust through that zone . . .
impressive enough that it had me reaching for my bull cap in
anticipation of a possible return. The market obliged, but didn’t form
any patterns to trigger me long. Instead, it continued to fall right
through that level, eventually finding support along a zone created by
yesterday’s low and S1.
It then ambled back up to the DP, floundered around there for a while,
and then dropped back down to the S1 zone, eventually falling through
to a support level created by several intraday pivot lows from Monday.
The tight reversal pattern formed off that level would have been
enough to trigger an aggressive trader long with an expected return to
the DP. Once again, the market obliged. Just gotta love them bonds!
This market is still not giving any clues as to which way it wants to
go in the longer term. It continues to flounder back and forth around
the DP, in very similar fashion as last Monday. The action is still
largely dominated by the floor with little outside interest to trigger
a trend.
The 5 period Double Stoch (thin red line) on the 200 minute chart
(attached) has begun to roll over, but the 10 period Double Stoch
hasn’t budged. The 7 period %K has almost flat-lined, just underneath
an overbought zone. We have a 2 day ROC Buy signal triggered from
yesterdays’ trading. For the benefit for those who may have missed my
explanation last week, the 2 Day ROC signal is the Raschke and Connors
system of quantifying the swing trading methods as taught by the
Taylor Trading Technique. This technique teaches that there is a
natural pattern to the sequence of buy and sell days. The 2 Day ROC
Buy signal is telling us to expect tomorrow to be the "buy day" part
of that pattern.
With the market as indecisive as it has been lately, I wouldn’t put a
whole lot of stock in this signal right now. As I’ve explained before,
I consider this to be acting as a "force" applying upward pressure to
the market, but there could be a great many other factors in play
applying equal or greater pressure in the opposite direction. One of
these, quite obviously, would be cyclical positioning as shown by the
Double Stoch.
It is only when there are a multitude of System Signals and/or cycle
indicators acting in unison that the trader should seriously consider
using them to determine a bias for the next day’s trading. Only when
the combine in unison to create a "preponderance of evidence" should
they be allowed to have significant influence.
But even then, always rely on price behavior as the ultimate
determining factor in making ALL of your trading decisions.
An important item of interest is the fact that Larry Connor’s methods
of measuring volatility have dropped very close to trigger levels on
daily charts. It has been my experience that when these fire, they are
a very powerful forecaster of increased volatility. I ESPECIALLY like
them to fire on Narrow Range days. Lots of fireworks typically ensue.
We might have something very strong going in the next couple of days!
For today’s trading we have more of the same: I am entering with no
bias and I’m closely watching price action around the DP.
PPI is being released at 7:30AM CT. I will avoid holding a position at
this time. PPI and CPI releases are sometimes right up there with
Unemployment when it comes to triggering volatile market movement.
Stay focused . . . make your trades when they set-up properly . . .
always use a stop . . . and enjoy the ride when the big one moves in
your favor.
And as always, discipline, patience, and flexibility are vital.
Bob Hunt
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