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.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bakunin who wrote (117539)	4/14/1999 4:39:00 PM
From: David Harker	Read Replies (1) \| Respond to of 176387

Well, if anyone is stupid in their approach with a stock that keeps going down (An assumption - I don't know Komatsu), then of course they'll lose their money. Read Ed's old posts - he describes his approach, and it is brilliant, not stupid, as your example supposes. He uses great quality stocks (you may disagree on that) as 'inventory' which he can use to produce income. The income is used to expand the size of his 'inventory'. The income is from premiums collected via selling calls and puts. He only sells a put/call when the price volatility of the option is extremely high, due to extreme stock price fluctuation. He collects that unusually high premium, and if he chooses, later he can buy that put/call back, at a lower premium, keeping the excess cash he collected when he sold it. I've learned a great deal from Edamo, and you should consider doing the same.