LT,
My strategy is to write in the money or slightly out of money calls when I sense a top and buys the call back when the market takes a beating. I have used this strategy on DELL for the past 3 weeks, and have have been pretty successful. Coupled with buying and selling naked calls and actually my portfolio improved about 15% during that period of time without buying puts or selling short on anything.
I think that DELL will report 0.48 and issue a 2:1 split. However, the best that I can hope for this baby next month is that it trade sidelines for a while. So I will probably sell August and Sept. 110 calls on all my DELL shares before they announce earnings. I don't see the issue dropping significantly below 98 1/2 (strong support level) and will decide whether to buy put the following morning they report earnings.
The only rule to success in this bull market is not to miss out a single rally of DELL, MSFT, etc. You can quickly double or triple your investment within 2-5 sessions. The trend is our best friend, man. And as long as the bull market continues, DELL, MSFT, LU, CSCO...will continue to rule (which translates to 4 fantastic earning rally each year).
good luck,
larry! |
