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Technology Stocks : Dell Technologies Inc.
DELL 119.41-2.7%Nov 19 3:59 PM EST
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To: freeus who wrote (135494)7/4/1999 1:03:00 PM
From: PMS Witch  Read Replies (1) of 176387
 
Option strategy -- Dell or others

If you are buying calls, you're paying for the opportunity you may enjoy. The question should be "Am I getting my money's worth?" If I'm interpreting your post accurately, you're trying to build a portfolio from a small initial investment, using the leverage of options. Rule number one: you can't afford a loss.

If you're sitting on appreciated options, you must decide if the further appreciation is worth the risk involved in holding them further. Successful option traders often avoid squeezing the last penny, because this practice often leads to taking a round trip! Once you have paid-up shares, you can withstand the market fluctuations and enjoy the appreciation of your stock long-term.

For what it's worth, I began with buying calls. I was fortunate with this and began accumulating shares. I then wrote covered calls. As my luck continued, I began writing naked puts. By this time my portfolio was large enough to support stock purchases on margin. Eventually I was able to sell shares and eliminate margin. This path may not suit everyone, but it was the one I followed.

Hope this helps, PW.

P.S. There are few option traders among the world's wealthy, but there are some buy-and-hold types. Choose the path which leads to where you want to go.
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