OT...Geez, I don't think that's true. I'm still up 200% over last year at this time because of options, both calls and puts. And I made lots of mistakes along the way--let some QCOM calls deflate, sold puts that got me underwater. What I've learned however is know when to hold 'em and know when to fold 'em is really important. I did see a huge amount of hot air in options evaporate, even recently, a ten bagger in NTAP went back to an even-steven no bagger. Why was I holding? So the thing is options bring out the get-slaughtered-hog-greedy part of many investors, and a lesson I've learned is, if you've got a double or triple in options, maybe take it off the table. They expire worthless most often when they're OTM and near-term. Or if you hold them past really good profits, hoping for obscene profits.
Leaps options also are a good bet, especially DIM leaps bought on dips. Like I bought some ORCL 02's 2 days ago.
Frank posted somewhere, maybe on QCOM?, that he'd re-allocated his portfolio, selling his QCOM to turn it into DIM leaps, freeing up more cash while controlling the same amount of shares. I thought that was a smart move. |
