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Strategies & Market Trends : Value Investing

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To: Allen Furlan who wrote (12126)2/24/2001 9:35:47 AM
From: TimbaBear  Read Replies (1) of 78614
 
Alan, Thank you for correcting my thinking regarding your strategy with WAXS.

I don't usually like options because of the ticking clock. It seems as though my timing is usually off when it comes to options.

Usually, I don't think of options and the phrase "margin of safety" in the same thought stream. However, on the surface, your arguments seem to indicate situations where decent profits might be available with adequate protection of principal. With options, however, I have learned that what appears to be "easy money" often has hidden risks that I need to be more aware of(i.e. volatility and the time limit of the option period). I think I would need to educate (and re-educate) myself on the option strategy merits before having any confidence in my awareness of the risk factors.

I know that McMillan's "Options as a Strategic Investment" is a classic in options education, and I have the book and have read parts of it. Are there any other books you would recommend on the topic?

Timba
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