Hedge 'n Hold

Discussion in 'Options' started by abishiai, Mar 6, 2003.

  1. I try not to discourage novice options players to play with the fire. But I have to point out that these guys are generous losers even when they win some trades. You know what, you are throwing cash away, pal. Stop attaching yourself within these unfair scams. You will be just a victim of this criminal industry. No scam is minor issue. The whole is a crime. Do not let them recruit you to be a loser.
     
    #21     Apr 21, 2003
  2. what's your ST target on ELX?

    Earnings wednesday. I assume you saw announcement of some joint venture with INTC?

    long ELX... legged into 5/22.50 p/c... long cheap 5/25c

    thinking of entering 6/20p
     
    #22     Apr 21, 2003
  3. Re-hedge position:

    I just made the following trade:

    Sell: 8 May 20 Put @ .25: +$190.00
    Buy: 8 May 22.50 Put @ .85: -$690.00

    New Cash Balance: $555.00

    Here is a summary of my current position:

    Long 800 ELX
    Long 8 May 22.50 Put
    $550.00 cash

    Cheer,

    kp
     
    #23     Apr 22, 2003
  4. I think the system is working pretty well for now. We've ridden the stock up from 17.80s to over 24, and have profits locked in at 22.50, so I'm happy.

    My only worry is that ELX will keep moving up, forcing me to lock-in profits, and I'll run out of cash! So, in a way, I'm hoping for a sharp correction of 5+ points, then a resumption of the trend.

    We'll see,

    kp
     
    #24     Apr 22, 2003
  5. Well, all I want to say to you is that it's a lose-lose game any way you play it. Most gamblers in this game are eventually just a bunch of ridiculous losers in the eyes of the scam players. Waste your time and money and have fun. Good luck to you, pal.
     
    #25     Apr 22, 2003
  6. I don't have any particular target. However, I would like to see it reach $25 since someone promised me a dinner in Vegas if it did. :D

    Sorry, but I pay no attention to news, just the charts. I think the news is reflected in the price, sometimes BEFORE the announcement, and sometimes AFTER. I have no way of knowing which it will be, so I just watch the charts to see what is happening.

    Having said that, I am not paying a whole lot of attention to the ELX charts. As I said in the beginning, my purpose is to ride this stock for a year and hopefully will catch a 10-15 point move at some point.

    Looks like a volatility play, which I think is good. VIX is the lowest it's been since June of last year. I read that as indicating complacency and a big move is around the corner.

    Prosper!

    kp
     
    #26     Apr 22, 2003
  7. Hey Buddy,

    You're barking up the wrong tree! Review my previous posts regarding options, and you'll see I am no apologist for trading options for a number of reasons.

    Having said that, I do think options can serve the purpose of 'insuring' a stock position. The purpose of this thread is to publicly demonstrate whether this is true or not. I picked a stock (ELX), bought it and will keep holding it through the year. As price moves up and down, I am using options to lock-in profits.

    There are others who advocate option trading strategies (spreads, butterflies, condors...) but I'm not one of 'em.

    Thank you for your spirited input!

    Cheer,

    kp
     
    #27     Apr 22, 2003
  8. Not to worry :) . What's your next move?
     
    #28     Apr 26, 2003
  9. The plan is to hold my current position until expiration, or until I have a bias that ELX is heading up again. At that time I will sell my 22.50 puts and use the proceeds to buy more stock, hedged with puts.

    Cheer,

    kp
     
    #29     Apr 27, 2003
  10. ELX takes a nose dive on Friday

    Is you option position providing the protection you wanted?
     
    #30     Apr 27, 2003