Re: [RT] My thoughts on the market

Just as an afterthought. What is the best way of buying calls, e.g., GS when the premiums are sky high. I contemplated buying these but the premiums were so high I got scared away. Unfortunately! Does anyone have an opinion when premiums are too high to get involved?

I realize a lot of these decisions are personal but there must be a way of "playing" this idea and mitigate the risk.

Thank you in advance,

JAC

In a message dated 9/18/2008 9:32:41 P.M. Eastern Daylight Time, tpylypuk@xxxxxxxxxxx writes:

Bob,

Although one day activity does not a change in direction make, your comments regarding naked short selling and total gloom and doom appear to have been predictive of today's price and other action.

Tony

-----Original Message-----
From: realtraders@xxxxxxxxxxxxxxx [mailto:realtraders@xxxxxxxxxxxxxxx]On Behalf Of Robert Arbuckle
Sent: Wednesday, September 17, 2008 8:54 PM
To: realtraders@xxxxxxxxxxxxxxx
Subject: [RT] My thoughts on the market

I admit that I have not seen anything quite like what is going on before. I've been at this for about 37 years and I've seen a few bear markets but never the destruction of one firm after another after another. I am fairly well convinced that hedge funds are working together and taking these financial firms apart. They know that if they drop the share price significantly, the firm will be forced to raise capital which they can only do to a point and then, it's end game. Mean while, they have shorted the hell out of the stock and walk off with a big bonus while the share holders, employees and associated businesses are left with nothing.

I think that enforcing the naked short rule will help this situation and it may help it a lot. We should put the uptick rule back in place too. Speaking of hedge funds, it's way past time they were caused to be transparent. If not for the good of those who have invested in the funds, then for the good of the investment community as a whole.

Last, as expected, we are now seeing forecasts of total gloom and doom and today, gold rose $80 an oz and 2 month bills had a negative return. If that isn't capitulation, there is no such thing. The enforcement on naked shorting kicks in tomorrow ... capitulation was today .. Thursday will be very interesting.

Bob