Hi Ibexx,
I've been trading options for about a year- feel like I'm starting to get the hang of it- or maybe QCOM's just making me feel like a genius. (: I was hoping to pick your brain a bit if you don't mind, as it seems you've done very well. I did well on QCOM options I bought and sold in September, Oct., Nov.- but then I bought back in when it started to back down off the high- January 400's -when the stock was trading at about 368. It fell further, as you know, to about 329 where you scooped up some options!
Good for you. I can tell you first hand about the erosion of the time premium- it's dramatic. Even yesterday, when Qcom was at its high- and more than 20 points higher than my buy in point- I still could only get out about what I paid for those options. I guess my questions are as follows- Do you always buy DITM calls? Do you usually throw them out there at least a couple of months? I see you buy on pullbacks- do you average down if the stock continues to drop, or do you sell and limit losses?
If you had these January out of the money calls getting close to expiration, would you sell them when an opportunity presents itself and get April calls on a pullback, maybe? And how do you sit on your hands and not take such a handsome profit, as you have now?! I actually think I'll do alright with these Jan 400s, but it's always nicer to be sitting on a fat profit than a loss, and each day that blasted premium disappearing- it's unnerving! Thanks for any reply- I know no one besides myself who actually trades options, so I greatly appreciate any feedback! |
