>>I'm trying to find the best way to increase my return.<< Mark, the stock market is a guessing game. It's impossible to reliably guess what a given stock will do, either this week or the next week.
Even if you had access to far better fundamental information on WDC, QNTM, SEG than is available on these threads, you still couldn't reliably predict what the stocks will do on a day-to-day basis.
The strong rise in prices for the hard drives stocks last week, and their dropping prices the first two days this week, are basically random events.
Personally, I think you're probably better off avoiding options. I know people say that selling options is a way to make some money while you're waiting for the stock to move. But the problem is, if the stock does move up, you've traded that potential gain for the option's premium.
I'm not saying it very clearly. Over time, options will cost you money. They won't make you money (if you compare what you would have by selling the options with a simple un-optioned portfolio). That's because of transaction costs (commissions, spread, and other factors).
I'm talking in general terms for the average investor.
The stock market can be very frustrating. But that's something we all have to learn to live with, if we want to invest in the stock market, trying to get a better return than what's available at the local bank or money market fund.
Best wishes,
Larry |
