Greg: OTOT Nickels and dimes
I chose to participate in the Web stocks for fun while
staying about 90% in Dell
If I think a stock is going to continue up, I buy some more each time it goes up about 10 or 15%
Amzn is an example:
Bgt 10 at 174
Bgt 10 at 219
Bgt 10 at 285
Bgt 10 at 312
At split time, I thought it may be as high as it was going but still liked it. So I sold the 40 shares for a profit of $4300
But to cover the event I was wrong ( and I was), I invested
$1400 in two Jan calls which are now showing a profit of $1900
And I have 200 shares working on the up side instead of just 120
(post split)
If the stock tanks, I've got min profit of $2900. If it goes up
between now and next Friday, then its more gravy
The only problem I have is what to do with the money from the calls on Friday, assuming they are 'good' ( I may buy a Dell leap)
I am doing the same with my favorite,Yhoo, (buying on the way up) and Aol,and a few other stocks, but only with those stocks that I 'feel' good about.
I am keeping the Yhoo until it splits, when comes another decision time. (Sell or not)
Summary: Just call me chicken(Bak,bac), but instead of having $19,200 at risk in Amzn, I have $1400 with good upside potential on
200 shares.
It may be small potatoes, but its one potatoe, two potatoes, three potatoes -four. Five potatoes, etc.......
Do this on several stocks and will soon have a bushel
Regards
Sig
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