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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (22076)	7/26/2011 11:33:00 AM
From: Kirk ©	Read Replies (1) \| Respond to of 220483

My example was buying some LRCX years ago under $10 in 2002. After nearly doubling in 2003 where I sold some of my accumulated shares, I sold calls to lock in a profit on some profits on some other shares at a call adjusted price of $19.40 ($17.50 + $2.40 premium) The stock continued to go up and I was happy with the money but I believe it reduced my ability to sell more higher and buy back the dips plus the tracking was a pain on my spreadsheets... Recently (in May) I bought more FNSR under $15... could have sold calls at $17.50 or even $20 to lock in gains on those but I prefer to let the shares run until I see something technical that says lock in the gains. Now with FNSR over $20... it seems that was the right choice, so far... I can sell now to for sure lock in the gains to have capital to buy back if the shares fall again... while with the options I'd have to wait for the shares to be called to get the capital. Now the $20 call 1 month out is $1.35. Is it worth tying up my capital for that? I can see where you are tempted... I'd be happy to lock in the profits if called and happy to collect the premium too..... but I'd be even happier to watch the action and hold until it peters out at a, hopefully, much higher price.