Hi, I don't know all the details of my play and would have to go hunting through my Fidelity confirms, but here's what I do recall: NTAP was at 98, I bought Sept 110s, and it's about a 5 bagger now.
I bought slightly OTM as it's a little cheaper, I bought Sept cuz that was farthest out I could get as I recall. The same day NT was at low 90s, maybe around 90, and I bought leaps, 100s, again slightly OTM.
I have never bought way OTM, altho I know taxman has done this with leaps and done just fine. The other day when Tef was touting MSFT (and correctly so) I bought 100 strrike leaps while he and everyone else was buying 100 Aprils.
I don't trade well with close in options as I get emotional. I worry, and it distracts me to the point where I don't do my other work well. Thus I pay more in time premium, but I sleep at night.
Case in point: I bought Sept 250 JDSU. On this thread Loff and others commented they were expensive. I believe the cost was about 36 at the time? Edamo also told me the same thing, and said that I was simply betting on continued momentum. They are now worth in the 80s and I still have to September. So, it works for me, even if I pay more in the beginning. |
