Time to talk with you!
You are absolutely right about the slot machine analogy with short term option. In fact anyone can tell these days that a lot of investors are scared of small companies and are dumping them to seek asylum in big market performers, making the dow go higher every day last week. So what I have thought would be wise is to buy big companies, but since they are expensive it would make sense to buy their long term options which, like you said will pay in the long run. Before I do that, however, I am gonna' take a long tirm to really try to understand how the market works, what affects stock prices and such. I have suffered some huge losses since during this past summer and while I have a strong urge to make up the loss quick before the stocks go up too high I am gonna' try to control the impulse because I know from experience that in a situation like this one ends up making irrational decisions and instead of making up the loss one looses a lot!! So even though everything looks good for the market through december and a lot of companies have a good potential I am not gonna' trade until I have learned at least the basics, and have controled my desire to make quick money because that has been diagnosed as gambling, which is bad. I know you are a busy person but I also know you are very knowledgeable about option trading as I can see how your investment in Jan 90 intel calls is paying off. I won't ask for too much, just some pieces of advice here and there.
So I am gonna' takea break, and when I come back I am gonna' start with a very small investment so I don't have to looose that much. and i am gonna' invst in options of companies like Intel, Microsoft and IBM. My idea is that if I buy June calls in December, they will perform well. I can see IBM at $160 for sure and intel at $150 by this time next year and I see Microsoft at $100 after the split around thi stime. So if I bot in the money calls in Dec. I am pretty confident a small investment could reap good profits, what do you think. I checked option quotes on www.lombard.com but I don't how to generate a listing of all option quotes for say a 4 month period, are papers the only source (likeInvestor's business daily), how did you obtain the whole list of intel option price through april? Did you have to type that whole list up or did you simply copy it from some internet site?
Good Luck with your investments.
Rafique |
