Ed:
Something constructive regarding options:
1) Market Wizards is a great book. Most of the extraordinary traders in that book (and there's a follow-up as well I haven't read yet) made occasional huge bloopers early in their careers. A mistake can actually be quite constructive. What made them successful? They analyzed their mistakes, filled in gaps in knowledge, and went on to be great traders
2) I found that book inspiring, and I decided poistion trading calls, and going long common, is a good strategy for me. I made good $ the last 3 months simply trading in and out of calls. Such as NTAP Sept 100s, which I often bought for between 2 1/2 to 3, and traded out for doubles to triples, usually in a matter of days. Then i switched to the July 80s and did that for a while. A friend of mine just loaded up on them and now has 200 Sept 100s so he was even smarter. Like LoF, I'll wait for a retracement on NTAP and then buy leaps.
Been position trading HGSI calls the last week, as it sold off from 180 to 140s, something Options Jerry kindly pointed out to me; now it trades up to mid 160s, it's easy to get 3 or 4 points per call out of it every few days.
Bought a bunch of SDLI Aug 410s on the selloff 2 days ago, for 14 7/8, sold for 40 the next morning. Missed buying Aug 500s on the selloff this morning, unfortunately, as I was closing out other positions. I see it's up 18 from the open, and probably about 28 from the selloff. Oh well.
I find position trading calls, and going long very profitable in a market where volatility is the alpha and omega, and I never have to worry about losing more than I invested, something I calculate ahead of time.
However all this has been on the other thread, and other threads that I've been posting on (Such as the SDLI thread).
Anyway, I'm not interested in doing battle with you, ed, and my hairballs and I apologize for citing that post. It was an unecessary jab, I just found the image of gorillas shedding hairballs on monitors very funny.
J |
