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John, I usually flip mine in a few days. As a trader, I expect a lot of myself. One of those things is that I will outperform an investor during the same time span. Thus, a buy and hold strategy for me is out of the question. Also, I have found over the years that all the stocks (even Intel) have their ups and downs for short periods and thus they can be traded profitably as long as the timing is correct. The strike price that I look for is that one that is in the area that the stock is trading. I usually try to get the one that is slightly out of the money. I find that it not only costs less and more contracts can be then picked up for same amount of money, but that this particular one will move just as much as the next one that is in the money - at least close enough to it to make it worthwhile. However, once taking a position I never lock myself into that position. If things go against me, I realize that I was simply wrong and will strive to move out of it immediately - to then prepare to roll into another option farther down on the strike ladder - if that opportunity presents itself. Sometimes, after getting out and awaiting another opportunity, the stock (and option)will reverse and come right back up (where I just pick it up again and go on with it. Commissions do not worry me. Nothing worries me - except losing money (ggg). If I wrapped myself up into thinking how much the commissions were costing, the tax situation, or whatever - I'd not be loose enough to trade like I should. You can't let ego get in your way in this business. One will make mistakes, but then you must learn from those mistakes and go on. There will be trades that you will lose money. One can't worry about that - you just go on. What matters at the end of the year is the bottom line. I love paying taxes - the more the merrier - it means that I've done well. Good trading. Jack |
