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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: clochard who wrote (87602)	5/29/2009 4:45:44 AM
From: Real Man	Respond to of 94695

It all depends. Put leaps are great when you have a crash. I had a 50 bagger this Fall on one of those. -g- In general, you have to track volatility, as it has great effect on the premium. So, now that we reviewed the dangers of options trading a bit, we can discuss John Paulson. He bot a boatload of subprime CDS, essentially similar to put options on subprime mortgages, with OPM in his hedge fund and got very rich. Is he lucky or smart? While YOU can't win a lottery, somehow there are always those who do. <G> I don't know the answer to that question. Personally, me thinks "lucky", as everyone knew those were headed for a disaster, but ... :)