Edwin, you are right about the conservative nature of puts, especially in relation to beaten down shares. I too experienced missing out on the upside as the share zooms past by margin greater than the original premium collected. However, since I watch upto 50 stocks at any one time, there is always another put to be sold. Sort of like planting and harvesting, or collecting a monthly paycheck, always looking forward to the monthly expiration day with relish.
On things like Yahoo, I had sold puts as well as bought the shares. On things like E-trade (somebody on this thread may have joined me on EGRP July 30 Put), I will wait a few days on going long the stock itself (after the dreaded Y2K and possible lawsuits). Leaving a few dollars on the table does not usually trouble me as there are other tables and other dollars.
Also, on things like SAP, NEM, one can do put sells repeatedly and not get put more than 1 time out of 6.
This is why I like the extreme volatility during crisis, as it is very sporting, much like vigorous sailing, testing knowledge, judgement, execution skill, reaction time, daring, and the feedback is sometimes immediate - capsize or alive in a calm sunny cove. 2000 promises to be vigorous, the boat is fueled and ready at the starting line, provisions stocked, and electronics checked.
Oh, 9984 just shutdown on up-limit. My favorite daytime channels are Softbank, Sony, and Founder, night time channel is MSFT/VSIO (though not nearly as exciting). |
