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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

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To: Jean M. Gauthier who wrote (97291)2/11/1999 1:59:00 PM
From: BGR  Read Replies (1) of 176387
 
Jean,

I agree with Bob regarding your past investments in LEAPS. One additional comment if I may regarding your future investments:

Personally I would never put 100% of my money in a

a) single stock
b) with high volatility
c) in a leveraged position
d) using options (LEAPS are options nevertheless).

Compared to Arthur we are all conservative, but otherwise I would not describe myself as risk-averse in any way. But the above combination sounds incredibly risky to me.

The max I would go including all leveraged positions is perhaps 15-20% of my portfolio (with perhaps a 3:1 balance between long and short term). In fact, even that is a stretch IMO and not meant for all (some even consider keeping 100% in diversified equities as risky and for good reason too). You see, leveraged positions are like habaneros, used in moderation they spice up the food, but in excess they can only cause pain. JMHO and YMMV. Arthur will probably differ. :-)

I recommend that you take note of Mark Peterson's posts explaining the risks of investing in options. And get a good book as well about options.

Best wishes!

-BGR.
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