Denice - I am with you
In fact I am ahead of you
I have been heavy in cash for some time and trying to follow Zeev is damn near impossible. Turnips can and do change on a dime and all of a sudden you will find yourself in a SCMR gap down of 15 points wondering what to do, while Zeev triples his position 3 times shaving 1-2 points to get even. gggg
The key point is knowing what is nuts and what is not.
CREE at 77 was nuts. (I knew this and did not pull the trigger)
RMBS at 36 was absolute nuts (I missed this because I was out) When I got back it was 49 and I did not know what to do having missed the bottom so badly, so I kept up my philosophy of buying more option on the way down.
IMHO options on the BU$$ are LESS risky than common because there is a chance (however small) that RMBS will lose to Infineon in court.
Now, back to the "problem"
When you are in cash you - have to have the guts to pull the trigger. Since we are not as good as ZEEV, buy big blocks but do not go all in. This is a trading market and there is always another chance.
In the meantime - do not just sit in cash and do nothing, buy SMALL positions in stocks or options to improve your trading skills.
Yesterday I bought CIEN 100 puts when it was near the high of the day. (Unfortunately only 2) But I near doubled my money on them. Same in RBAK but did not do as well.
I am sitting on AMZN PUTs from when it hit 40.
If SSTI drops to 20 I will be a big buyer of SSTI calls. In the meantime I try to improve my skills trading a couple thousand shares. RMBS at 60 is a screaming buy, I will add options at 65 and more at 60. The BU$$ is so damn unpredictable that I just buy options on the way down and sit on them. I have learned the hard way not to chase the BU$$ with too big a position, yet I feel naked without any.
That means I am too in love with the BU$$, a problem that needs over-coming. My position right now is relatively small.
I actually believe Zeev's bear scenario for next yer so another 2 great chances are coming up (Buy PUTs at the top BUY calls at the bottom) If we are even close - we will do very very well.
Thanks - for the question.
Actually I was depressed about missing this runup, but having made and lost a fortune this year, I am still way up percentage wise, but unbelievably down from my highs in March and AUG.
That said - thanks for your question because for those new at trading, I believe this strategy is correct, but sharpen your skills with small trades in the meantime.
Good luck to both of us in this strategy. |
