Folks, I am surprised that 50k+ share owners are around in this forum ! Way to go guys thanks for sharing your exp. with little bulls like me (age:28+ own 1k+ shares. )What is the best strategy for CALL OPTIONS ?
My advice to you is do NOT trade options unless you really believe you have seen a price extreme. I think current price is probably a short term low, but unless you think you are 100 convinced this looks like a short term low, do not buy call options. Buy the stock instead.
If you hold call option, try to sell the option and buy the stock at the first opportunity that you think you have a good sell price for the option. Remember, options are a zero sum game against the option writer, while as on stocks you gain on the fundamentals.
You can strategically increase number of shares you hold from 1K to something like a few K on the way up. Just buy on the margin on big dips, and light up your margin on any big rally. Maintaining a proper margin of 50% would allow you to increase your shares by 10 times as the stock price also appreciate 10 times.
The key to making money is don't be a speculator, be an investor. A speculator does not know what he is buying and is just gambling that the price will raise the next day or two. An investor has done his DD, truely understand what he is buying, and does not mind at all that the price temporarily dips, because all that does is offer a better buying opportunity.