Rick,
Thanks for your comment, and happy that many people join the discussion. We can all learn from either other and make money.
It totally makes sense since options (both short or long) can be an insurance play on any stocks/market. On top of the calls play, I am also looking at LEAPS puts play. S&P500 LEAP puts will be a great play against a market correction; however, IMO, I think the market will goes up another 200 points in the next couple months and slow down during the summer. Depends on the inflation, we might have a mild 5-7%% correction. That's about it unless the economy or the market fundamental change rapidly.
I am trying to build a diversed list of LEAPS. I tried to either pick out of favor stocks (networking) or steady growth & safe play (no-brainer) like LU and BA.
on calls:
AMAT (in 96), COMS (bought), CSC0 (waiting), LU(good entry point now).
BA (split soon, great company and bigger market after the merger).
INTC(excellent, by expensive.)
on puts:
PSFT (doesn't have LEAPS), ... ideas.
note: only problem with LEAPS, not many companies trade LEAPS (not many have GIANT LEAPS, like AMAT).
Alex |
