Re: WDC
Bart:
Yeah, I vividly remember your (and my) holding WDC calls through earnings last time around <g>. I can live without that kind of stress. My current calls are deep in-the-money (32.5s and 40s), so each move by the stock is reflected fully in option price. Consequently, I'm finding this sequential "bad" news of the last few days disquieting, especialy as the stock has come down from around 53.
If I may ask, based on your experience when do you move out of i-t-m calls (either to close or to roll out to o-t-m calls (i.e. would you use a percent return criteria (i.e. 20% itm or 40% itm or ?) or would you use a time value criterion (i.e. 1 month remaining, 2 months, etc.) or some other criteria? I know that the question may be simplistic, but I'm still learning this options game at a mile a minute and would appreciate your input.
To the Thread: I have to say again that in reading posts from Ike (WOW!), Bart (truly fearless!), Lisa (thanks, Lisa, for APM), Al (nice call on IOM, Al), JT, Taqi and many others on this thread, I'm getting an in-depth options education with a much more limited downside $$ exposure. My thanks to all of you for your time and willingness to share your insights and experience. You are remarkable people.
Good trading.
JasonW |
