Price "J" Monger,
My serious money goes into long stock positions. I use options for short term plays, and as hedges. If I buy a new long position, I will sometimes buy some covering out of the money puts just in case it goes sour, but not to often. Almost anytime I take a short position in a stock I will buy some out of the money calls, again as a hedge in case it rallies on me. Those are term insurance policies, pure and simple. A while back I was short RACE, and was a Nervous Nellie the whole time because there are no listed opsions for RACE.
More and more I'm writing covered calls to generate income, but I keep bailing out to soon, limiting my profits.
I'm sure Jeff, Janice, Ole 49 and others are far more serious and experienced options traders than myself. |
