Comments on: NASDAQ Composite ($COMP) Chart – March 7, 2008

By: Options Strategery

Options Strategery — Sun, 09 Mar 2008 19:46:59 +0000

I am moving towards more a more conservative margin model once I slowly unwind these positions. The lesson is: everything is correlated in a downturn.

By: Alex Fotopoulos

Alex Fotopoulos — Sun, 09 Mar 2008 12:37:12 +0000

I’m starting to get scared of how often we agree. Aside from how closely you run to full margin, our model is very much the same. I’m not shorting any more at these levels either. I’ve actually canceled all my limits since I’m close to fully invested now and want to have a little something left if/when we go farther south.

By: Options Strategery

Options Strategery — Sun, 09 Mar 2008 08:56:22 +0000

I am bearish on the technicals of the market also but I think there is upside news risk. Every day, we get tortured by weak economic news and fickle government intervention. Eventually, things are going to become so bad that someone has to do something. Suppose Ambac and TMA fail. I suspect the government will step in before the same happens to agency paper and prevent NLY from failing. Any news of a real bailout can send us higher. I wouldn’t necessarily short at this level but hedging the longs is definitely smart. Every day without a margin call is another day of celebration.