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   Strategies & Market TrendsDJX (Dow Jones Ind. Avg. options)


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To: giddy guru who wrote (7)10/5/1997 8:11:00 PM
From: FR1
   of 33
 
I am sure you must have some strategy on how to play the DJX. What are some of your plans? Have you been playing other indexes? What have you found works and does not work?

I am just planning to use it at times of the year where the percentage chance of a down market is reasonably high and perhaps as a hedge when I am too heavy in the calls.

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To: FR1 who wrote (8)10/5/1997 9:44:00 PM
From: giddy guru
   of 33
 
//gg//

Franz,

My opinion, I stress it is just my opinion, is that DJX is option is a slow mover. It can be used as an hedge against a portfolio. Leaps can also be bought just like any other equity leaps.

OEX, SPX and other specialized options would be better for trading and quick in and out. OEX had a range of about 25 points on Friday. OEX and SPX would have been a better choice in those volatile periods.

I don't have any specific strategy now on DJX. I would like watch, wait andd learn before plunging in.

/gg/

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To: giddy guru who wrote (9)10/27/1997 2:28:00 PM
From: Zardoz
   of 33
 
Here's a question:

Anyone think that there's a connection between the market dive and the issue of Dow options. {Sure seems like a great way to sell stocks and buy options/futures, and not risk yourself to the equity}

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To: giddy guru who wrote ()1/2/1998 8:51:00 AM
From: david siple
   of 33
 
HI everyone,
Along w/ the New Year, comes thoughts of "where's the Dow headed?"
Has anyone traded DJX? Did you hold PUTS and CALLS together? Or just one or another as a hedge against your portfollio?
Any info on Strategy or Pointers that may have Worked out for you, or not, would be appreciated.
Thanks,
-ds

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To: david siple who wrote (11)2/24/1998 8:35:00 AM
From: MJR
   of 33
 
Hello:

I haven't seen any contributions here for quite some time. Is everyone not trading lately or just no talk? I'd like to see this thread get going again as I'm about to embark on trading options on the dow and could use all the help available.

Regards,
Mike

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To: MJR who wrote (12)2/24/1998 8:41:00 AM
From: david siple
   of 33
 
hi there. I am holding on to my december 7600's. At an average price of about $3.70. Not so much thar i feel like a bear, but because before then I believe we will have a few huge drops in the market: whether 's the 2nd , 3rd q's showing REAL Side effects; gulf war; bad sentiment; terrorism; etc.
I call it insurance.
Most of my holdings are long.
What are you thinking of? puts or calls on the djx?
--ds

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To: david siple who wrote (13)2/24/1998 10:50:00 AM
From: MJR
   of 33
 
David:
Your longterm feeling that there will be at least one "big" drop in the dow this year makes sense and I'm quite sure you'll make a buck or two on that one. Shouldn't be that far out either.. although not as bad as the last one, I think this coming earnings round will have it's share of warnings to shake things up a bit.

My style of trading DJX options is fairly short term .. I tend to move in and out with the day-to day trend movements, but certainly not the hour to hour moves.. that's way too much energy needed.

I'm now watching DJX for a firm reversal. The charts (60-day) show a strong over-bought condition that is due to pull back soon. A bit of a hint to this was seen yesterday.. and today we're done 48 points now and falling intraday. If we drop below 8300 on the close that should be my "Buy Puts" indicator.. looking at March Puts now.

Oh well, back to work, and back to watching the Dow..

Good Luck,

Mike

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To: MJR who wrote (14)2/24/1998 2:36:00 PM
From: david siple
   of 33
 
Mike,
when I first "looked into" DJX's, I had planned on going about it like you: basically, holding on for several days or a week. But, after watching it a bit, it occurred to me that there was no way I was going to make money that way unless we had severe swings (taking into acct. bid/ask also). Am I missing something or are you putting down LOTS of money on these trades to overcome what I am up against. I.E. I am looking at dropping a thousand bucks on "sev. days" trading and a small percentage on my down the line trading (the insurance.)
--ds

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To: david siple who wrote (15)2/24/1998 5:13:00 PM
From: MJR
   of 33
 
You are correct.. the bid/ask will kill you unless there is a large move in the dow.. I generally load up with 20-40 contracts, so not all that large.. but large enough to overcome some of the difference. Because of this I look for indicators that point to a 4+ day trend.. very short term trends tend not to be enough.

Mike

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To: david siple who wrote (13)2/26/1998 12:59:00 AM
From: William Nelson
   of 33
 
David, I'm interested in hedging some with these options....
December 7600 sounds like exactly what I want.
But, I haven't dealt with options before-would you mind explaining
a couple things to a newbie?

1. What exactly is one djx put? If I have one 7600 put in Dec. and
dow is at 7000, is it worth $600? Or 60? Or something else??
Also I saw several Dec 7600 puts listed for quite different
prices....but I couldn't understand the difference between them.

2. How do you exercise them if it comes to that?

Thanks in advance-

W.N.

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