To: Paul A who wrote (70048 ) 4/15/2001 1:36:59 PM From: ZenWarrior Respond to Paul A: For the most part, I agree w/ your statements (except on semis of course; though they *may* fall back some next week as they face resistance and earnings). However, my current goal of 400%/year is not as difficult as you may believe... and really not all that risky (20,000% is truly risky). The only reason I made 150% over the last month or so is because I'm only buying options w/ a small account. When I get my tax return, I'll be investing most of it in stock and my LEAPS calendar spreads strategy. I.e. I may buy KLAC Jan '02 35 LEAPS if it drops below 40/share, then sell say May 45's... as those expire (or I buy them back cheaper), then I'll sell the next month 1-2 strikes OTM. With a decent stock and just some slight timing by selling the short term Calls whenever it is up, one can make 300%/year relatively easily, pulling in short term premiums vs. cheaper (on a per month basis) long term LEAPS. You also get the underlying growth of the LEAPS position itself, which will obviously grow quite a bit w/ solid stocks. I think 75/share is a conservative price to see KLAC at by Jan '02... that alone w/ give me 200% or so. The downside is limited... only trouble comes of KLAC drops and stays below 25-30/share... or if you really screw up the month to month volatility selling. And of course there's always the chance volatility levels drop a lot, which is why I actually like the prospect of using this w/ more stable, non-volatile stocks which have potential volatility increases. It's also important to buy when the market has low VIX/TRIN readings of course.Any person off the street can take all their money, put it into a penny stock and if he/she is lucky as all hell? they find an EDIG and make millions..
