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Well said
Dom.....BUT it is really important to understand that many option strategies
have "built in" stops......
so being down 20
pts is pretty meaningless from a money management standpoint UNLESS you have
SOLD NAKED CALLS or something like that long or short stangles come to
mind....where there is massive exposure to loss.
<FONT color=#0000ff
size=2>
Other strats like
bull/bear spreads have auto-stops...same for butterflys and
condors.
This does not
mean it would be judicious to retain the loss position for these.....it all
"depends".
<BLOCKQUOTE
style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px solid">
<FONT face=Tahoma
size=2>-----Original Message-----From: Dom Perrino
[mailto:domenick@xxxxxxxxxxxx]Sent: Friday, May 10, 2002 7:57
AMTo: realtraders@xxxxxxxxxxxxxxxSubject: Re: [RT]
qqq
For the record, the below was written by JAC. I
responded to it.
Cheers,
<FONT face=Arial
size=2>Dom
----- Original Message -----
<BLOCKQUOTE dir=ltr
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Ira Tunik
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Thursday, May 09, 2002 9:28
PM
Subject: Re: [RT] qqq
If you want to hold on to the QQQ because you don't want to
take a loss, that is the wrong reason. The first loss is the best
loss. If you are looking for a way to correct a trading error by
compounding it with a strategy you don't understand, you are making a
greater error. There are many option strategies that will satisfy your
need because you want to hold onto the QQQ. The other mistake, I
believe, that is being made here is that it appears you are looking for an
option to expire worthless to put money in your account. Also the
wrong attitude. Options were meant to be traded or used as a safety
net. There are other uses for options but that gets into the
sophisticated area of options. Before you try to save yourself with
option time premium erosion call the CBOE and get all the free information
that they have on options. It is extensive and some of the best
options material available at any price. Hope that things work out for
you. Ira.
Dom Perrino wrote:
<BLOCKQUOTE dir=ltr
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=JAC1390@xxxxxxx
href="mailto:JAC1390@xxxxxxx";>JAC1390@xxxxxxx
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Thursday, May 09, 2002 8:06
PM
Subject: Re: [RT]
qqq I am holding a position
in QQQ's down 20 points. Can anyone recommend <FONT
face=Arial>a strategy for writing options on position
with the intent of not <FONT
size=-1>selling position. In other words if position gets close to
getting called away I
want to maintain position rather than realize loss. Pie
in the sky thinking?
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