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Macmillan is welcome to his opinions. Generally speaking, given the choice
of locking in an immediate additional loss equivalent to running significant
support/resistance after a major move has already taken place, and trading
my way out, I would opt for the later. Further to the point, I don't trade
weather markets and were I doing so, I would be watching wave counts and
gaps in my favor extremely carefully. Certainly, limit volatility can appear
out of nowhere, however prudent selection of markets can minimize such risk,
and limit moves are a cost of doing business.
Each to his/her own. I've traded options with/without underlying and I don't
like the complexity it adds to directional trades.
Earl
----- Original Message -----
From: GC <corrick@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxx>
Sent: Thursday, August 12, 1999 1:00 PM
Subject: Re: RT_Re: Limit Down
> Earl,
> As an FYI, Macmillan's more recent book contains a section on using
synthetic
> options positions to offset limit down moves in futures contracts. He
even
> goes so far as to say "if you don't understand this concept, stop trading
> futures or learn the concept".
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