steve..."protect your cap"
best way i know to not only protect your cap, but to grow it is as some of us do....understand the concept and the less then owning stock risk of put selling...in spite of the volatility of the market, my portfolio or "un portfolio" grows........call buying has been great for many, especially in a fast moving market, but you never hear about those who bought the qcom,jdsu,brcm,rmbs,and any biotech otm call as the momentum was breaking...
consider this......sell all your long stock positions....and at the same time sell puts in the underlying at strikes and expirations which would if assigned give you the common back at the same price you just sold at......so where is the risk???? same as buy and hold and ride the dips out...only if you do this month after month, you collect 4-10% on your cash, and you actually do not lose opportunity, as you are following the common up as it moves....
so simple of a concept....most can't grasp, as they believe that you must take money out of your pocket to make money...prefer the infinite return of a put premium versus the hard return, no matter how great of a call buy..
question everything....but believe in reality...you know as much as the "experts"....your staying power is based on your experience....got to go contra, if you believe you have insight based on history.......never was a market that went down and stayed down....look at long term charts of dow,nasdaq,s+p.......more historical up then down...lessen risk, enhance portfolio with non/beneficial deteriorating options position......and even on a day like yesterday, you will end up with a net gain..... love is an emotion...it clouds reality with a perception of well being...no place for it in investing...sooner or later the "honeymoon" is over!!!
keep your eye on the "old original" actually make money, and have much cash on the balance sheet, large cap high tech stocks.....intc fore tells the next trend....money rotating out of "no earning junk".............much to be made in intc,msft,csco,sunw,emc,dell,cpq,hwp,ibm.......good premiums in at or below money put sales....5% yesterday on csco april 125's.....all great chart and smooth stealth like momentum patterns...
what's the seattle wireless application? not aware
thanks..ed a. |
