To Anybody Who Have Bought AMAT LEAPS due to my Recommendations:---
When I said a 5K investment in AMAT LEAPs could balloon to 100K in 1 year, I should have added that said LEAPs could also lose Air to 25K with 2 months to expiration then could fizzle out to zero if the underlying security should stay at 15 or less at expiration time in Jan. That way, at 100k, the LEAPs are Too Good Not To Be False; at 25K, Good Not To Be False; at 0, Bad To Be True. Also, for the investor who buys for 5K and sells for 100K----it's a Get-Rich-Quick Scheme; for the investor who buys with 100K and see his money dwindle to zero---it's a Get-Poor-Quick Scheme. ..So a LEAP is just a Tool---like a Knife that we can use to peel off an Apple's skin but can injure us if not handled properly.
You have been warned by Threaders who think LEAPs are so risky and my not be worth considering and that there are better alternatives available, and me who thinks it's an excellent one if done properly. So if you have bought and are now in doubt, you can sell tomorrow or wait a little more for the stock to go higher. For the brave at heart, you could continue but make sure to sell at a profit---when the stock hits 40?, 50?, 60? Or 100?---it's up to you, its your own money you are playing with not mine.If you did not buy yet and considering doing so, you may want to try first on paper only, not real money; try it for a year, 2, 3,.10 years, then use real money if you are 100% convinced. If not convinced after 10 years then you may write a book for profit entitled ---"How Not to Profit from LEAPs" (sorry, Im just joking on that last one).
I Have a confession to make: ---I did lost 80K in Short-term Options for a period of 3 years before, but those were I repeat, SHORT-TERM Options. Luckily, I recovered everything and added more with LEAPs, which were LONG-TERM. I know more and more people in this thread will be doing Options; I want the new comer in Options to do LEAPs first. By doing LEAPs instead of the short-term Options, he minimizes the risk of investing by using TIME as his friend. |
