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At 04:41 PM 12/28/99 -0600, Mark Brown wrote:
>in my entire career Ii have never bought a call or put of any kind on any
commodity. I have chosen only to sell them, but I may >give it a shot this
time.
Dear Mark,
Please, stay with trading you are familiar the most. Reduce size of the
trade to better control loses. Use less leveraged instruments (like
spiders). But by all means do not go into the new territory especially if
you expect an unusual activity from the market.
Secondly, use the most simple strategy. You expect market up then go long,
you expect it down then go short. More complex strategies requiter special
situations and you need to have an experience how the complex strategy
behaves. In most cases, the pending move is reflected in the premiums and
slippages. Also to control the complex strategy require a specific
arrangement with the brokerage community. It may be hard to execute the
complex trade especially in the fast market.
Best wishing and old Alex.
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