No Fred, I've never shorted a stock. That would take more ...well more than I have. I routinely would write options on DELL, my other major current position (LONG). DELL is not NETP, or more precisely, NETP is not DELL. Dell is a great buy and hold. In order to protect ones assets one could use options, that's what they are there for, not speculative gambling. NETP is ALL speculative gambling. Holding NETP is, by it's nature, daring the Gods. I merely possed the notion that there is alot of day money in NETP, the gambling community is better servered by a far more leveraged tool like calls. If I were long again in NETP I would strongly consider puts to hedge against the ineverable crash. Holding NETP is betting it will short term go up, I can do better than that will some May 40 calls, lots less expensive and, if I am right, I win much better than had I spent that $1000 going long. Where I've been dealing in the 10,000 shr blocks I could forgo the risk to that kind of money and have the same power over 10,000 shares short term for FAR less money. I think alot of people will sell out of their long and buy calls.
Walt |
