I'm afraid I have disagree with you, Jill. Options work very well in uni-directional markets, but options traders require an extraordinary amount of skill and focus in mixed markets to just to survive. In contrast, long term stock holders will (hopefully) be able to look at the carnage of the last few weeks as uncomfortable "bumps in the road", that caused no permanent injury.
>> 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.
We'll see how smart it was down the road. LEAPS require very little timing skill, which is why I employ them to a limited degree, but I'm painfully aware that the leverage they offer works in both directions. For the record, I only converted a portion of my qcom holdings to LEAPS earlier this year, and still retain most of my qcom investment in the form of common stock.
Everything I've read, observed, and experienced leads me to agree with Mike that options trading is an extremely high risk investing approach best left to serious students of that discipline.
uf |
