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Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (2480)	4/8/2023 2:20:49 PM
From: FIFO_kid2	Read Replies (1) \| Respond to of 2591

Bob- I appreciate your compliment I feel it is an area of investing that has been closed off to retail until very recently because commissions historically ate up the potential profit of an expiring option especially those with a low chance of being exercised and especially in a market where conditions are contracting for that margin of safety. Another thing I like about them is you know what your potential profit upfront and no greed gremlin in the back of your head telling you to hold it longer because of its potential or holding out for a LTCG tax implication. The rule of thumb for risk biotech seems to pose as the greatest danger for options because they are consistent wasters of capital and are at the total whim of a government regulator. In my lifetime I have only owned one bank stock where I currently bank and was able to participate in its IPO in 1997. I eventually sold it about 4 years later at an 80% profit but nothing of great size. My uncle was a head bank examiner for 2 years at the Office of Thrift supervision in my region when the thrift crisis was in full force during the late 1980s and told me this thrift was the best capitalized at the time. I was always high on the pawn shop industry as a "safe" bank alternative given its business model and to this day I still hold FCFS and is one of the very few stocks I have kept for 20 years. Offtopic: I grew up in Wisconsin so any references there I can certainly relate to.