re: << too naive? give me a break. That's the kettle calling the pot black >>
LT,
Since you claim yourself an experienced options "investor", I would like to share with you the options trading lesson #101:
"Avoid bullishly oriented option strategies in downtrends, and bearishly oriented option strategies in uptrends."
Simply put, don't buy calls in downtrends, and don't buy puts in uptrends. The uptrend stock will not go south just because you buy puts. DELL is certainly in its uptrends, since it is above its 50-day and 200-day moving average, and you're trying to pick the top, which even a naive option trader would try to avoid. Remember, nowhere is trend-fighting more painful than in options trading. If you don't learn it from here, you will learn it from your painful experience, which is not worth it, my friend. |
