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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Big Dog who wrote (141086)	10/15/2010 12:24:55 PM
From: Bearcatbob	Respond to of 206184

Amen Big - see - you are a quick study!

To: Big Dog who wrote (141086)	10/15/2010 12:35:24 PM
From: Salt'n'Peppa	2 Recommendations Read Replies (1) \| Respond to of 206184

I agree with you in principle, but not in practice. This is why I keep saying that you can mitigate your risk by being proactive with your account and your positions. I view the likelihood of APC going to zero in the next 30 days as close to 0% and therefore not a realistic risk. Could it drop by 50% on bad press? Sure, and that is why I will cover my losing position when the premium value doubles. I would lose $1300, not $45,000 (minus $1300 premium). Risk management and discipline is the key, as is buying the right option in the first place. Luckily my APC NOV45 P is almost worthless right now. vbg "Just because some of the maintenance is on margin rather than in cash, doesn't reduce your risk. You are just borrowing money, which is at risk." NEVER MARGIN OPTION MAINTENANCE! I can't shout this one loud enough. I have made it a practice to always have plenty of cash in my account to cover any calls coming due that month. Do not be tempted to use up all maintenance room in your account. Leave some wiggle room for down days. I have options in my accounts going out to March 2011 and don't have enough cash to buy every stock that I am optioned on, but I can cover all obligations in the current option cycle. Money management and risk management are key to this game. Cheers, S&P Great discussion, by the way.