Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: golfer72 who wrote (185961)	10/12/2014 8:49:44 PM
From: isopatch	3 Recommendations Recommended By fred woodall Jim P. JimisJim Read Replies (2) \| Respond to of 206116

If UR talking about buying calls? Am not a long call buyer. AFA defining your risk, thereby? I'd point out your risk is always defined if you use a protective, mental, sell stop and stick to it. If UR talking about shorting covered calls against a long stock position? That's most effective in a trading range market. Further, covered calls give only limited downside protection in case this bounce is modest, AND followed by another leg down due to worsening economic conditions across Europe and elsewhere, further impacting our markets. IF I were doing a trade? I'd keep it simple. Set a protective stop and not anticipate a long holding period. If I'm wrong, and we get an intermediate term rally? My definition of that being 3 weeks or more of rally. Just let the profit run and move the mental stop gradually higher to lock in a larger and larger profit. That profit won't be limited by the strike price if you avoid writing calls on the share position. Have to leave it there, log off, and take care of other things. All the best, Iso