Thursday, July 03, 2008


Sometimes I say buy in the money calls---
And then you go look at the price and its 11.00 or $1100---
If you are not prepared to play the ITM call cause $1100 just blows your mind---
then LEAVE MY pick ALONE --go to my next pick---
Example if you want to play DIA calls---guess what?---
you have to buy DEEP in the MONEY AUG calls to be safe----
THOSE cost 11.00---$1100---
IF you are not prepared to invest $1100 in DIA---
then you have NO business even PLAYING DIA----
There's a reason for spending $1100 vs. $100---
The option owners set the price so that for every dollar you miss the on the entry price---
the stock now has to go up $2 to get back to even---
If you miss by $6---then the stock has to go up $12----
On deep in the money---the stock goes down $6---
the stock only has to come back up $6---
to get your money back---

HERE's TWO MORE RULES---only buy ONE CONTRACT at a time---unless you have 50K ( $50,000)in your account.
One contract at a time will still make you $4,000 a month--cause there's always at least ten things to buy per month---

HERE"S another RULE----IF you buy a contract for 2.50 ( 2.50 is a losing price to begin with, but that's another story---It's called option price History)
put a stop loss 1.90 on it---that's 25%----If you get stopped out---go look for the lowest possible buy signal on that stock and wait for that price---

I Guess in a bear market this ratio 50 day could go down to 10 or 8--
but if it can't, then market already bottomed---
too bad Hiker at TK went bankrupt or vacation --
who knows---He could explain this to me--

Can't stop laughing !!!!

People at other blogs, always telling other people ---" YOU can't time the BOTTOM----HOGWASH !!!!!
XHB at $15---now that's what I call market timing---el per fecto----
There's always one INDEX fund gives away the top and gives away the bottom---
You just have to know which Index is the next in line for that duty---


USD just keeps plodding along inside ( never outside)the BB13,2 band---This sort of consistency, really makes it easy to BUY FXE PUTS, and to know when USO might correct



RIG, there's every reason to believe RIG will hold at it's 200 DAY ( 135.67) ---RIG leases have tripled their rates, past few month's.
Knowing where RIG settles, tells you where XLE and OIH will settle---
So will you brave enough to back the truck in on all commodities when RIGH at it's 200 day---
that is the question--
I already know, I'm buying at the 200 day--RIG
And if you buy RIG, you might as well buy XLE, the same day---

30/50, the last batch from around 6 or 7 days ago --got crushed in the down turn---
This new crop, will fare much better--Buy Now---In the money calls---

VIX collapsed today--so all the fear in the market is dissipating fast--It's not dissipating because of the general market conditions, It's dissipating because stocks are so low priced---

EMAIL ME !!! anytime