First off, yes I sometimes use options for protection. It helps me to sleep at night. Normally, I sell calls and buy puts. I bought the puts while the stock was shooting up and got a grat price. If the stock goes up...great. I bascially spent a little $ on protection. For you long term investors...great I am a swing trader. And yes, I participate in AH trading. It is like the wild west but you never know when someone hit's your bid...For instance right after they released their earnings the stock shot way down to 31 and change...I put a bid in for 32.10 and got the stock. I normally don't buy more on the way down...no good at catching falling knives. I look at technicals and fundies. I bought CRM in the 40, 50 and 60. I've done just fine with that trade.
I'm long but won't be buying any more unless I see a move with volume to the upside. I'm new to RVBD and bought right after they announced in AH. As you recall the stock shot up the next couple of days but has since done nothing. I also own some 31 puts.