<<<He buys in the money or close to at the money options and is happy with doubling his money, whereas I have held out for, and managed to get almost 10 times my money I have also lost big. My biggest disappointment was buying DELL 100 July's on June 30th
for half a buck (when they were heading down to 90 from mid 90's)and selling at 4. They hit 17 when DELL peaked on July 13th or 17th>>>
True pain and disappointment can be obtained by reflecting on the fact that I sold 40 shares of Dell in 1993 .That is 40 x2 to the 5 th power, or 640 shares. All you got here was a hickie.
There are so many ways to play options it makes head swim.
This the reason book writers say to set a goal beforehand, and thus when you achieve a goal at least you can identify what went right(or wrong.
My experience with options is limited, but Dell SEEMS to be different than other stocks, in that when one gets a double on another stock its best to sell it, but Dell can be kept longer.For example,
my Csco options were red, then black, then red, then black so I sold them before I went color blind.But my Dells are (almost)all black.
I also bought the Oct options you mentioned, at 1 7/8 and at 2
thinking they were cheap but no specific idea when to sell as I think they will be good near options expiration.
They went to 3 1/2 in a matter of minutes, them right back down again so I am (happily) stuck with them now.
Should I have put in a sell order??????????. I truthfully don't know...(yet), and without a goal, will now sit on the fence until
the time seems right to sell. That may be today......
Had I sold them, I would then have to make a new play today, repeat the process, and become a day-trader, which can be very is exciting but does not fit my personality as well as it did 50 years ago(hahaha)
What works for me is to buy and hold Dell or the leaps, and toss
in a few short term calls now and then but not too many. But if you are making money and having fun by whatever process then try to keep it going, because even bears can get killed in the present market.
Hope we can trap one today(g)
Good luck
Sig
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