Duncan,
You're right about us having a ball. <G>
I can understand why you see no pattern to my trading, as I'm trying to learn from the real masters here and so have been following them into some trades. I started as a daytrader and will still daytrade options from time to time if the conditions are right. Generally, I try to tailor an options trade to the specifics of the company (ie the pullback in QCOM yesterday, which to me showed surprising strength in the stock, leading me to establish a bullish position).
I followed DoK into the SEBL Leap call put sale last week. I sold some SEBL 2002 80-strike puts at $19 1/2. Then I got antsy, to be honest. I kept saying to myself "Why am I tying up the equity in my account for two years in a trade that will only give me $19,500?" So I bought them back at $17 1/2, pocketed the $2000, and moved on to what I seem to do best at: short term plays.
I guess my point is that it's important to find your own style (short v. long term, aggressive v. conservative) but to also keep your mind open to others' ideas. I was an a simple call buyer and did very well with this strategy last fall and early winter, but when the market changed, as did the trading pattern of my favorite stock (QCOM) I decided to try to learn other strategies. PAL, ed, and others here have been patient teachers in the put selling strategy and I've found that it works for me too. |
