<<Probably the best idea for preserving capital is figure out what the loss is you're willing to take (5%, 10%) and put a sell stop good to cancel order in to protect yourself. That protects from the sudden gap downs.
I still don't do this. One reason is the market is SO volatile the thing can gap down and gap up--as in extr, as you pointed out.>>
Thanks Jill and I agree....I try and use mental stops.....I only use the real thing if I will be away from my computer and feel something needs to be protected just in case.
CMRC....wow, I'll bet those CC's are pricey to buy back now<ggg>....you bought I think you said at $17 and did an immediate writing of CC's? What month and strike did you write and what premium did you get? Also, curious as to how your playing it.....I imagine your staying out of the casino and will just let it get called if thats whats in the cards, or will you wait til expiry, see where it is then, and then decide whether to roll up, let it get called or whatever......heck, bu third week in Feb, cmrc could be back under $20 if naz tanks....but if naz holds, cmrc looks strong right now.
EXTR, lost a bundle on it last year...trying to make some back on it now.....hoping it drops back under $40, at which time I'll grab some more and write next month slightly OTM CC's, or maybe further otm as long as I get 10% in premium upfront which is what I look to get when writing CC's. The thing I like about extr, is fairly OTM are still paying 10% or more...normally you would have to write ITM's or very close to it, in order to get that 10+% premium.
Thanks for the advice and good luck with your trading.....what do you think the market has in store for us the next few months...rough waters, or slow rise due to fed moves?
Have a great weekend
Keith |
