Like you say, John, you sure can get your fingers burned on options. I have been burned many times, especially this summer. Fortunately, I have not lost any money on Intel options or stock.
When I buy Intel options, I generally buy April 1997 options. It gives me lots of time. I had some January calls but they were executed over the past several weeks.
In any case if you are new at option trading buy yourself lots of time, and you should also focus on stocks you know well.
By the way, if Intel shares drop further I would buy long calls. I heard on TV last week that as the year winds up, more managers will make sure Intel is in their fund.
After all, how would their fund and their performance as managers look without Intel in their portfolio?
So let's hope we see a bounce in the stock, especially after Greenspan's meeting finishes tomorrow.
I also own Intel stock. I believe Intel will go up and up and up, even though there will be pullbacks after a strong rally.
Good Luck to the new Intel investors. If you buy options, buy conservatively.
It is always unpleasant to lose money.
If you are unable to lose money, for either psychological or financial reasons, you may be better off buying the stock.
Options expire.
But Intel stock will offer you a good return for many years.
As you can see I am an Intel fan so my comments are biased. They are just my own opinions. |
