Hi jpgill: In answer to your question, I'm staying with options on my main five stocks that I've carried in my weekly holdings posts recently. They are JDSU, EXTR, CIEN, SDLI, and BEAS.
As I mentioned recently, about six weeks ago I started rotating my option positions to play the volatility. I raised the cash level substantially. After about three weeks, I then changed my style to quicker turnover of positions, taking smaller profits repeatedly, and with tighter stops. I'm not day trading but the focus is take profits, not get greedy, but do so quick enough to get in and out of positions. Sometimes it is same day trades, but most often I turn them over in 2-3 days, again, playing the volatility which has been pretty good with some options swinging substantially intraday or every couple of days.
This method is risky as hell and I would not recommend anybody try it.
Instead of my usual ITM, 6 months out options, now I'm trading closer in, 1-3 months out, and a bit OTM for leverage. Again, understand I've changed my style to merely take a buck here and there versus longer hold as before. I've had about 25 different positions in those 5 stocks the past three weeks.
Had to say all that to explain my answer since it is quite different than what I've explained to others when asked over the summer.
Good luck.
RR |
