| Not too bad and keep up the good work....I fully understand what you are doing, and why.....I just figured if you got the calls at your price, you could make more ROI, and make it worth the commissions, taxes and cost for accounting. Any profit is better then a loss, but a $100 profit is almost not worth it.....once you pay commissions and taxes there aint much left, and if your actively trading, there could be accounting costs at end of year to fogure everything out......anyway, I just figured the calls would give you more bang for your buck, and the volatility makes it fairly safe.....we are not heading straight down.....this has been a market of nice % rallies and big%falls.....a traders dream....and if your using leverage in the form of options, you ( not you...nut people in general/....) could be making a killing with these up and down swings....I remember having some atml 04 $10 leaps...they were so cheap when atml was at $5 or $6, I bought a boatload. ATML, the stock went up $2 to about $7 - $9, yet the calls went up about 900%, and of course I sold....I could have held and gotten more as atml ended up getting to 10 - 12ish before coming back down, but I was very happy with my 900%...and when I calculated the amount I would have made had I bought stock and taken the $2 profit and run, as compared to the amount of calls I bought for the same $ amount....and then to get 900% when they went from like .25 to $2.25 or so....well, I really saw what leverage can do....Additionally, ask horsegirl to post a few example of her CC writing and buybacks.....I'll bet when she writes the calls during the rallies and buys them back during the massacres, she is probably making a very nice % ROI...all while the stock was going to be sitting there anyway.....Personally, I think she has the best strategy for this market.....on one hand, we could go down more, and it could be awhile before we come back...on the other hand, we could come back anytime, and there is value to be found in this oversold market.....so I wouldnt want to be totally out of market...if we didnt get out at or near the top, I see no reason in going to 100% cash now after we have been bashed by 50 - 90%.....The best thing to do is probably to buy the massacres, and do what HG does and write CC's....I know I could have made alot of extra money over the last year while my stock just sat, had I been writing CC's and buying them back and so on and so on........anyway...good luck to all.... |
