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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: freeus who wrote (16323)11/14/2000 11:04:13 PM
From: PAL  Read Replies (1) of 65232
 
freeus:

you are correct that option behaves quite differently from stock. On top of that the volatility continues. a person who is trained as a ltb&h will have to adjust his/her thinking about an option due to limited life of the instrument. the days of bragging ten bagger in a short period of time is over. remember the rule of thumb: if your call option doubles, sell half of it and preserve your original investment. this idea applies to short puts as well. always know where the exit door is and know when to use it.

good luck

paul
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