I was very confident on Apple's pre-earnings run so was very risky and had about 90% of my trading account invested in Apple. Started this past week with 220 contracts (22,000 shares) of Feb 300 calls I had bought the previous week around $29.50. Sold half mid week when up 20%+ and bought 1000 shares when AAPL dipped to $332. Holding the other half of the Feb 300 calls until Monday / Tuesday and will convert those to Apple shares. Will then sell covered calls these post earnings while stock consolidates again.
Total holding over the weekend is the remaining 110 Feb 300 calls and the 1000 shares of Apple.
Glad to hear there are others as reckless as I was. I will say it is not smart to be so heavily invested in Apple (or any stock). While we did our homework and knew there would be a pre-earnings run, a catastrophic Apple event (Steve Jobs death, major Apple lawsuit loss, etc.) could be devastating -- especially for those of us in options. That is why I sold half once I was up significantly -- to be a little better protected.
Looking forward to a great day Monday.
Good to see that I am not crazy with both husband, son and I at 100%. Have tried other stocks and made some money but we research and know aaple so well that we can rest at night and know that it goes up and down but the trend will be up. Money is not our God.... so easier to rest. Not that I haven't been nervous in the past.....
Of course, this is not something I recommend to anybody.... you have to accept the risk yourself knowing the consequences. Have used stops on occasion.... other relatives got stopped out recently on the last flash crash... thankfully, we had no stops in....
I recommend knowing your stock inside and out, owning and using every product and study the culture of why this is so successful. That's why we hold when the stock just sits or even slides alittle. We know that it is still rock solid.
Can those that have said they thankfully haven't "stopped out" help me understand...If you had 100% in AAPL back in 2000 around $30 and put a stop loss in around $20, what would have been the adverse affects of dumping at $20 and accumulating again around $10?. I realize this is all hingsight 20/20, but are you saying that you probably wouldn't have gotten back in that low? Trying to undertand what would be so risky or stupid about putting a stop in at $300 if your cost basis is 2bills or less. Can always buy back in. I agree with one posters comment about puts to offset but a stop loss seems like the easiest way manage risk if you've got 100% of your nut in AAPL and not a load of cash on the sides to buy enough puts to hedge it. Thanks for the insight.
I once used stops, but they have a downside--you can be stopped out by an event like the May 6 Flash Crash,then watch helplessly as the stock runs away from you! If you're going to put all your money in a very few, or just one, stock, learn how to use options to protect yourself without the risk of being stopped out. Options make good defensive tools, if you learn how to use them--I've never used a stop since I did.
I am 100% aapl.
It gives me grief and I am not proud, nor do I recommend it. Sleepless nights....but it has paid off handsomely, and was why I was up over 50% last year.