Cramer on Real Money

Discussion in 'Trading' started by SethArb, Mar 7, 2003.

  1. hello

    can someone who is currently a member of this site
    summarize an article Cramer wrote today on RM

    "Play Both Sides against the Volatility"

    thanks ...
  2. How do you play this kind of thing? Simple, you develop your favorites and when the market gets oversold -- as defined by minus 5 on the oscillator -- and when fear gets extreme -- a plus 40 on the VIX and sentiment of 40 bull or below on the Investors Intelligence poll -- then you buy calls, preferably deep in-the-monies coupled with out-of-the-monies on your favorites, usually out three or four months. Then when the stocks rally, you put out common against your favorites on a scale and you just keep doing so until you've laid off common against both strikes effectively. At what feels like the top, you sell your most pumped out-of-the-monies as they should be at-the-monies, and then you are set for the next decline.