The S&P is looking very toppy

waggie945 · Jan 20, 2004

"Part of RISK management, especially of selling naked calls, is the ability to LIMIT RISK. If you can do this effectively, there are no infinite losses. The key to dealing with risk in options, or any other vehicle, is to limit the risk, while understanding the risk/reward ratio."

Tell me, how is your RISK limited when you head into option expiration short calls on the futures?

For Example:

The March S&P futures contract closed at 1133.20 last Thursday the day before Expiration, and proceeded to climb during the night and early morning hours to OPEN at 1136.20 on Friday morning.

What if the March futures had gapped a lot higher than 3 points? What if the futures had gapped up 10-12 points from Thursday's close? How would your risk be limited then?

QdzResurrection · Jan 20, 2004

Get a life. Admit that there is no such as thing called toppy in a mega bull market.

Pabst · Jan 20, 2004

I covered my shorts @36.75. I'm sick of selling this shit. :mad:

Trend Fader · Jan 20, 2004

Quote from Pabst:

I covered my shorts @36.75. I'm sick of selling this shit.

U need balls to become a good trader. If that means taking the other side while everyone is saying the other thing.. then so be it.

The market will correct and it will do so in a swift and short duration... Like it always has and always will in bull markets.

Markets are very tricky. In the past 7 days the QQQ was trading above support of 37.60. The market can drop under 37.60 in practically 2 days of selling... whiping out practically 2 weeks of gains. Thats how the game is played.

--MIKE

James Stock · Jan 20, 2004

Quote from waggie945:

"Part of RISK management, especially of selling naked calls, is the ability to LIMIT RISK. If you can do this effectively, there are no infinite losses. The key to dealing with risk in options, or any other vehicle, is to limit the risk, while understanding the risk/reward ratio."

Tell me, how is your RISK limited when you head into option expiration short calls on the futures?

For Example:

The March S&P futures contract closed at 1133.20 last Thursday the day before Expiration, and proceeded to climb during the night and early morning hours to OPEN at 1136.20 on Friday morning.

What if the March futures had gapped a lot higher than 3 points? What if the futures had gapped up 10-12 points from Thursday's close? How would your risk be limited then?

nolan-wiggle-sam-

I very surprised you're showing your face around here after being thoroughly humiliated (by me) and by your ill-advised touting of Dean as a lock to win the democratic nomination.

Take an extra dose of lithium tonight, and accept the fact that you have no clue what you are talking about! Dean, what a joke!

James Stock · Jan 20, 2004

Quote from welcher's Mom:

you all better listen to HIS words, he is so good. MY jammie IS ALWAYS RIGHT

why don't you just say this as longshit? what's the point?

Pabst · Jan 20, 2004

Quote from Trend Fader:

U need balls to become a good trader. If that means taking the other side while everyone is saying the other thing.. then so be it.

The market will correct and it will do so in a swift and short duration... Like it always has and always will in bull markets.

Markets are very tricky. In the past 7 days the QQQ was trading above support of 37.60. The market can drop under 37.60 in practically 2 days of selling... whiping out practically 2 weeks of gains. Thats how the game is played.

--MIKE

TF, I've got tons of resistance 1140 ish in SPX. What's got me spooked is I see no evidance of the market being overbought. This low put/call is not so much bulls reaching for calls as much as it is stock longs SELLING calls against porfollios. Yea 8 straight weeks, weekly RSI darn high. Meaningless. The tape tells me theres a lot of people doing the same trades as me and it ain't working. In the last week plus, horrible payroll # , the huge rally off of Thursdasys post INTC break, the shallow break off of todays blue chip weakness. Hell the Russell never traded lower on the day. As soon as I see short term traders not selling every near breakdown I'll be there pressing.

James Stock · Jan 20, 2004

Quote from Pabst:

TF, I've got tons of resistance 1140 ish in SPX. What's got me spooked is I see no evidance of the market being overbought. This low put/call is not so much bulls reaching for calls as much as it is stock longs SELLING calls against porfollios. Yea 8 straight weeks, weekly RSI darn high. Meaningless. The tape tells me theres a lot of people doing the same trades as me and it ain't working. In the last week plus, horrible payroll # , the huge rally off of Thursdasys post INTC break, the shallow break off of todays blue chip weakness. Hell the Russell never traded lower on the day. As soon as I see short term traders not selling every near breakdown I'll be there pressing.

Hang in there Pabst. It's coming soon.

You know when I can always tell when the top is in? When i'm convinced it's going higher!

waggie945 · Jan 20, 2004

A guy (Trend-Fader) that "might" have $30,000 in his account who scales in 100 share lots of the IWM ( Russell-2000 Index ) at a time until he has a cash position of 250 shares or 500 shares leveraged, telling a former CME floor trader that it takes balls to to become a good trader. Now that's pretty ironic, eh?

Hang in there Pabst.
It will be interesting to see how the SMH reacts to December's 1.20 Book-to-Bill ratio tomorrow.

waggie945 · Jan 20, 2004

I'm a registered Republican, moron.

By the way, I'm still waiting for you to tell me and the rest of the board how your risk being short calls the night before an expiration is limited. . . .

Let me guess, you are going to avoid my question and go run home to your Mother???