If you got 1000% on 85s, you hit the proverbial homerun. Now, the fence is 800 feet away instead of 350 feet. Also, all that "house" money means you have more scale to work with--a 10-pound bat instead of a 1-pounder. A year ago, I used options as a way to get a decent position, beyond what straight dollars could buy me. I think a lot of people initially get attracted to options for that reason. But a lot of people on this board (I think) have had a pretty decent run. If that is the case, it may be time to reconsider "What do options mean for me?" That is what I have been trying to do. Have not come up with the final answer. But in terms of taking long positions (on swing trades), I would rather just concentrate on common as I feel straight dollars gives me a good position, without all the spreads, risk, and so on you have to deal with in options.
Now I would rather sell somebody else the leveraged hope-line. Sticking to common for purchases, selling covered calls or puts for sales. Easy in, easy out. Already out of cree, will reenter again below 155 if it happens. If not, so many other momo fish to shake a stick at.
I think it's obvious, but I'll just state that it all comes down to a personal decision on what one is comfortable with. I'm just presenting my personal "thinking", FWIW. |
