Echo To All

Apple and Google: Changing My Mind

I don't know if this is the best strategy, but it has worked for me very well...

i'm a chart guy, so i think i have a good understanding when an equity is really oversold. And when the oversold condition is near a price I am willing to pay for the stock, I sell the puts at a strike I am willing to buy the stock.

For instance with at the moment with GOOG, it is not oversold, and it is hitting the 85sma resistance.

once oversold sell ur puts (or its at a level ur willing to pay for the stock). I stick with short-term options when selling (to benefit from time decay), so I would use the March puts. Assume ur buy price of GOOG is 290. Sell the 280 March Puts. If a hedge is desired, sell the 330 March calls (or a strike your comfortable with, that will not exercise and can provide a hedge)

being a chartist I would (and have) purchased puts (330 march) today, as it reached the 85sma resistance, and when (if) it approaches the target price of 290 with an oversold condition, sell the 280 puts. (possibly keeping the purchased puts as a hedge to the sold puts)

(I primarily use my charts to dictate when to enter/exit, and utilize options based on my understanding of the charts. so i may not be giving the best option strategy via strike prices versus stock price.)

hope this helps