Strictly: Drilling II Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly: Drilling II

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: BSGrinder who wrote (11057)	4/24/2002 3:27:43 PM
From: waverider	Read Replies (1) of 36161

Good points Grinder. At the moment I have $30 2004's on NEM. You are right about the tendency to be a bit more loose with the stop loss/sell points here. Since they are so far out, one has a tendency to not sweat the noise. Which for me is a good thing. With shorter term options, I have a tendency to let fear get in the way and will pull the trigger quicker. I know my emotional limits on these things which is a critical risk point to consider. I have rarely made much money on short term options because a couple days worth of downside can make them worthless and it usually takes a longer time for them to return...all the while the time premium is working against you. I can't stress how important it is to know one's emotional and risk tolerance limits when dealing with any trade...especially options. The other thing to consider about leaps is that it is generally a good idea to start thinking about selling them within 10-12 months BEFORE expiration. The time premium really starts to get chewed up then. This discussion is focusing on calls, not puts in case anyone is unclear about that. But 6 months out is a reasonable risk for me and I am considering it. Thanks for your input. wr

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next