I'm still sitting on the 2007 $140 put leaps that I bought in October. If this doesn't break by next September I will double up or shift my strike higher and out to 2008. I am one short that is in this for the LONG haul
What are you doing with GOOG these days?
I have Jan Puts at 200 and 195 that are expiring today. Just about breaking even.
Lost in Dec and Nov.
I will probably buy some Feb Puts next week.
betting that earnings will not spike the stock like last oct.
<<I learned long ago that it does not make which way it moves, as long as it moves you can make money!>>
...and even when it doesn't move
Which is where your selling option strategies come in
<<Most people don't remember that the market basically went sidways for 10 years in the 70's, and I think we may be in another period where it will do the same.>>
I would strongly agree. I have been bearish on
these markets since Greenspan's famous irrational
exuberance speech in 1996 and I believe the only
thing that kept them going down was his manic running of
the currency printing press and the debt boom.
I think the huge debt overhang will be as hazardous
as the boomer retirement and the combo of the
two are going to be deadly going forward. I
honestly don't believe America will be the same
nation on the other side of this 'storm' and have
been preaching of the danger for years on these
That being said I do believe the markets will go
sideways to down to correct the easy money
imbalances which means it's a trader's market. I
am a trader and would not hold those straddles
either if there was a profit to be made in six
months. You need to be nimble as a trader and
what Mr. Market can give he has often just as
quickly taken away. That's why I like to adjust my
positions as the markets move and options allow
you that luxury
A sideways market is a trader's market and a good
trader can make money in any market.
a good example is this qqqq chart for the last five years
If you had bought and held in January 02 and sold
this January you would not have made a dime and
yet in that time the Q's went from 40 to 20 and back
to 40. Now if you can't make your money in a
market that corrects by half and then doubles from
the bottom you don't deserve to be trading.
I can buy puts and calls, and write covered calls. I can't do any activity that is considered Margin, like writing naked calls, selling short, ect..
Good luck with the QQQQ's. My personal belief is the marke will go sideways for the next few years, so to use that strategy I would probably cash out before the 2 years when I have a decent profit i.e. a short term spike up or down.
Most people don't remember that the market basically went sidways for 10 years in the 70's, and I think we may be in another period where it will do the same.
Remember, the baby boomers are starting to retire and many will be selling thier equities for living expenses, so starting in the next few years there will be a constant pressure on securities to get buyers to fill the gap.
We will not be over that hump until I'm ready to retire.