whativer - I agree
Bull market buy calls: yes at the start of the rally. In my opinion though, you would buy calls when all stocks are depressed, or rather, sell puts when the stocks are depressed: financialweb.com
compare with your financialweb.com
Who wins ?
Question is, what to do today ? Is this the start of the rally? technical rally in a bear market? sideways market ?
In order to play the SDLI/JDSU merger, I wouldn't risk Dec 380 calls, costs me 60 1/2, break-even $440. I'd rather take the premium of the Mar 390 @ $75 (maximum profit).
In order to beat the put writing, the call play asks for the share to price 440+75= $515, and I can still reinvest the premium received in other SDLI shares.... brain-cell overheating.... have to stop here for a while.
Have printed something here, trying to retype:
Buy the AEA sell the H$Q.
Buy panic, sell histeric.
But:
Do not buy, sell puts.
Do not sell, sell calls.
Play with 10% and safely place the remainder of your wealth in bonds and rental properties. Use these as collateral for maintenance margin. Never use margin. |
