jmac,
Since you are new to SI, and this thread, you should know that using
Caps Lock is reserved for emphasis, or when one wants to SCREAM at another person.
If you will, please take note that I referenced the desription of your transaction in my note to Jack # 6455. I believe that I said that the transaction you described was one in the same as the one I had done. However, I suggest that before you "scream" at Jack you go back and read his many fine posts on this thread. I have known Jack for many years and I regard him as a true professional. I don't care if he has a license or not, he knows what he is doing, and in my eyes, he is indeed, "a professional".
Sometimes, because I know Jack so well, I take poetic liberties. As I did this morning. And while we may differ sometimes in our objectives, and the way we trade, it is because of our different orientations. That does not make Jack, or me, wrong. What I think Jack was not taking into account was the fact that an investor, who is long the stock, is more inclined to sell options deeper into the money than a trader might be willing to do. Also Jack's tries to make money on each and every trade that he enters into. However, that may not necessarily be my objective. As a long term investor I will use options in a different way. Sometimes I use options to hedge risk, or to protect long term gains when I believe the market is vulnerable to a correction. This is what I tried to do with the transaction that you described. If I lose money on that options transaction it may be secondary to fulfilling my greater overall strategic intention, protecting profits.
So jmac welcome to SI. However, it would be nice if you are going to stick around, to fill out a personal profile form.
Jules |
