SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : You buy a stock. It goes down, now what?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bald Eagle who wrote (2)7/7/1998 11:32:00 AM
From: Melissa McAuliffe   of 112
 
Wise, I think your cc idea is a very wise<g>one. I was in a situation similar to this last yr w/ifmx. (Unfortunately I'm still in it). But I chose to just write cc's every chance I got. They've always expired worthless, btw. I bought that stock at slightly over 9 and my cost basis is now somewhere around 3 or less. So I don't really mind owning it and will just keep writing cc's until I eventually lose the stock.

I guess it all depends though on what you paid for your stock and how quick you are to act. Someone who bought vntv at 25 or more will have a harder time with this cc strategy. I just think that psychologically it's more difficult to write cc's at a ridiculously low price compared to your cost. I don't think I could have done it last year on scop...though it would have been the much smarter alternative than to just sit and hold it. But scop eventually got acquired so it turned out for the best.

I think that to be successful at what you're doing you have to be realistic enough not to expect to see the stock have some really good run up.. And you have to be prepared to lose your stock if it does...that's why I think sometimes people don't want to do the cc's. They buy a stock they think is hitting a temp. problem and plan to make a killing on the ride back up. If they don't mind having their money tied up doing nothing indefinitely that's a potential solution. Not for me anymore having learned the hard way that there are better alternatives.

What I really wish I'd done on this is bought calls and then shorted the stock when I mentioned it. But that was a new concept to me and I just wasn't comfortable. Oh well....live and learn.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News