>on our convictions to that which we are stating here now. It may not >be so easy to remain committed to this non action approach if a >1987 type of correction were to occur.
i think people exaggerate 1987 "black monday." remember that one of the biggest up-days in the history of the dow was the day after black monday. and it took, what, a few months for most stocks to gain everything back, no?
anyway, i think it's a good idea to own some puts here and there, just in case. i don't always follow this advice, but if i were more conservative, i would. as for writing calls on stock that you own, i'd never do it: after all, i hope for "the b ig breakaway" to happen on all the stocks i own, and would hate to have sold off that breakaway for a small premium. naked call writing, well, that's a bit out of my league. :-)
so realistically now, what do you think would happen to intel stock price if we had a major crash? 125? 120? and maybe it would sit there for 6 months, and then rocket up to 200 and beyond. yes, i am too young to have invested in the bear markets of the 70s/early80s, but those who persevered through them eventually got their reward, no?
just some thoughts. and what is your opinion? how much do you hedge? |
