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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: tekboy who wrote (11534)11/30/1999 4:06:00 PM
From: Jill  Read Replies (2) of 54805
 
tekboy, I respectfully disagree. I found your posts a while back on entry points, i.e. limit orders set 10% below current trading range etc, and how that might impact gain longterm interesting. So did others.

I really don't understand why people don't make options trading part of a longterm portfolio. In this particular market, with such rich premiums on such high volatility, as in QCOM and JDSU for instance, it is as a friend says, "like stealing." It's that easy. And it reduces cost basis enormously. I think this makes a huge difference later.

There are people I know who mainly invest in gorillas & kings, although not posting on this thread particularly, who have created portfolios of immense wealth from modest beginnings. They did this with options--judiciously. If you for instance want to sell puts on QCOM steadily and reasonably without being too greedy you will constantly reduce your cost basis. Similarly, let's say you bought only one OTM 200 QCOM call for $2,000 a few months ago. It would be worth probably about 18K today--and when QCOM splits 4-1 you might be able to sell 1 call post split for profit and exercise the 3 others, and buy 300 shares for free. (I'm speculating here--I don't know what the #s will be) Isn't that something a lot of us would like to have--300 more shares in our portfolio?

I don't think it has to be a focus, but I have never understood why there isn't room for it to be included in discussion from time to time.

JMHO (truly)

Jill
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