Tom and All,
Last time we touched $400 ( $100 post split ) everybody was euphoric. Let me ask a question - besides the correction of the market(s), what exactly has changed about the Q since then ? I can't see much. In fact, everyday, the Q looks better and better in my eye's. With this in mind, is it not prudent to take advantage of this "gift" instead of walking around in total despair? I don't know where Q is going short term - the market is so much different now then 5 years ago. Some folks say we may hold at $100, some say we may go below. I have no idea...I think fear alone can bring us down further. There are a zillion warren buffet wannabee's running around with no idea what they are doing. Folks like that are the one's that are buying Q at $160 and selling it the next week at $105 out of fear. This alone makes it so much easier for the Houses to do as they wish. Anyway, The Q at $100 looks very appetizing to me.....and if they want to tank it down to $75 it will look so good I may have to rent an eighteen wheeler, back it up to the Q loading station and fill it to the roof with long shares and leaps.
Anyway, I just find it interesting how euphoria can switch to panic in such a short time...but with the Q, I would expect it to eventually switch back to euphoria, unless the Q story changes.
At this level, I agree with jmac, I will not write any more covered calls on my long shares. I will simply let them sit and ride out the storm. I do have a question for you Tom, and anybody else......what are yall doing with your leaps. I was thinking of selling the 02 150 - 200's and taking advantage of the discount in the 02 120- 140's. Problem is the premium on the 02 200's has been shaved alot, I am wondering if I should just hold them. If I do, it takes away some of my buying power on the 120's. On the other hand, I could take the loss on the 200's which wont hurt at tax time, and then grab the discount on the 120's, and be able to buy more. Anyway, just curious as to what some of you folks are doing. My long shares are staying in the vault at this level, but the option game is one I wouldlike to take full advantage of during this volatility. I did well writing the CC's on my Q up til now and buying leaps, but I will not write anymore CC's at this level. Now I just need to leverage my leap position the best way possible.
All idea's will be appreciated.
Thanks,
Keith |
