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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: CommanderCricket who wrote (141089)	10/15/2010 11:49:39 PM
From: energyplay	Read Replies (2) of 206187

Selling options - When things go bad, you have to not only cut your losses, you need to be prepared for the blow up that occurs about every 2-3 years, where YOUR stocks drop 30%, and all your puts are exercised. Can you then hold those stocks for the 4-8 months they need to recover in price ? Or will you still need the roughly 2% a month you were making - where will that money come from over the 4 months ? Are you going to sell calls as the stock rebounds ? That can be tricky... >>>> Also, note that (selling options and trading) tends to become at least a part time job - much like work - easy office work, but still work. <<<<

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