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Hi Ben,
Trying to get a feel for your option strategy by watching in real time
.. with SP at (rounding everything) 1425, Feb 1400 put at 15 and Mar
1525 call at 5 which would require a ratio of roughly 3 March calls to
cover cost of each February put. I believe you mentioned watching the 55
day ema which is just a couple of points above 1425. I'm watching last
sale prices on the options rather than calling the pit for live b/a but
the prices should be close enough. Assuming you were looking to enter
long, what would you be adjusting or would you write 3:1? Mar 1500 call
is 8 and 1475 call is 12-14.
Thank you.
Earl
----- Original Message -----
From: <Proffittak@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Cc: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, January 28, 2000 1:22 PM
Subject: [RT] Re: Overnight disaster insurance?
> In a message dated 1/28/00 12:49:26 PM Eastern Standard Time,
> nmas@xxxxxxxxxxxxx writes:
>
> << Ben
> Can you please explain your strategy according to the previous SP
example?
>
> Thanks >>
> At roll over time (DEC contract to the march contract)
> I bought 4 SP 4 ND 4 nyfe and 4 DJ
> at that time, The DEC SP was at 1300 (aprox) I sold 24 1400 march
calls
> and bought 16 Jan 1275 puts,
> when SP reached 1350 I sold the Jan 1275 puts and bought the FEB1325
> puts.
> Also bought at a loss the march 1400 calls. and replace them
with
> march 1450 calls(24)
> As the price keep going up (50 handles) I keep adjusting my
position,,
> the net result is that you have always insurance ,, low DD and
> you have staying power for YEARS,,
> I was long all year 1996 1997 1998 1999 and 2000,,
> when do i get out??
> when SP future close under the 50, 55 exp. m/a I get out
> and stay long the puts and short calls,
> when the SP is back above both I re enter the long futures
> The net net in my pocket is 75-80% of profit made on the future
only
> position!
> This is the only way to trade peacefully,, no stress ,, no worry
of
> overnight exposure,, and yes a sacrifice of 20-25% of profits
> p, s
> if credit collected from selling calls is not enough to pay for
puts I
> just sell more calls at 110 points above instead of 100 above,,
> hope this helps
> Ben
>
>
>
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