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 : Gorilla and King Portfolio Candidates
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Poet who wrote (9855)11/7/1999 5:02:00 PM
From: Mike Buckley  Read Replies (1) of 54805
 
Poet,

With regard to the discussion about trading versus investing, how would you characterize options trading? It's certainly speculative, no?

Yep.

But it seems to be seen here as a legitimate way to increase one's portfolio.

I can't speak for anyone other than myself so I'm not sure what the consensus is. Regardless, each of us needs to act according to our own beliefs about what is best for us, not according to the consensus.

If you use the term, "long-term investing," in the same context that I do, options don't fit for the simple reason that they expire too soon. Even the longest LEAPS with an expiration date 2 1/2 years out are not what I would call long-term vehicles. Though they are barely acceptable for my portfolio given an underlying stock that has hugely promising fundamentals, I still wouldn't consider any derivative an investment; it's a speculative vehicle in my mind.

For those who viably argue that some of the insurance strategies help preserve capital and are thus, conservative in nature, I think the bigger point is that those insurance strategies are still short-term strategies.

Having said all that, I think it's very easy for any of us to get hung up on the terminology and to get lost in the semantics. The most important issue each of us has to decide for ourselves is whether or not we want to add options and/or LEAPS to the much longer-term gorilla-gaming strategies. The factors that seem to affect that decision is our potential for accepting risk and our ability to spend the time monitoring the shorter-term strategies. I hope the folks who decide to go for those shorter-term strategies will put pencil to the paper (or keyboard to the spreadsheet) and closely evaluate the dramatically different tax consequences.

Hope this helps.

--Mike Buckley
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News