Newmont Mining(NEM) & Newmont Gold(NGC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Newmont Mining(NEM) & Newmont Gold(NGC)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ahhaha who wrote (120)	4/21/1999 6:04:00 PM
From: dwight vickers	Read Replies (1) of 587

Gotta be honest with you. I've been using options since they came out in the 70's and I've never heard anyone refer to covered call strategies as risky. I've done them in bull markets and bear markets. Most important, of course, is using solid, beaten up, value stocks, that have good insider buying profiles. That way the downside is limited to start with. "Sell straddles"? Didn't say that. It would mean being naked one side and I don't take that risk. Out of the moneys? Sure, I'll sell whatever makes sense. But I made 40-60% annualized, selling ELY covered "in the money's", when the stock was down 70% from its highs. Take the stock?? My money is made. Stock declines under $10 where I bought? OK, I'm covered to $8 1/2, I sell more calls. Can the stock decline below where I'm covered? Of course. But what if I was just holding the stock? I'd be in worse shape. I'm putting money in my pocket. Not selling naked. How can I lose if I like the stock anyway?? I'm only reducing risk. Hmmmmmmmm............ How long have you been using options, or at least watching similar strategies "not work"? Dwight (Similar to buying internet stocks?? Really......)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next