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Originally posted by Tatnic
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WHAT??? WHAT??? WHAT??? I have been investing successfully for over 35 years!!! Inexperienced NO NO NO, panic NO NO NO, do something rash NO NO NO. Do I come across as inexperienced, panicable and rash??? Wow! I am NONE of those things! You must have me confused with somebody else! Are you stereotyping me because I am female??? I admit I don't know a heck of a lot about options strategies as insurance for stock positions, but that doesn't mean I'm inexperienced in other types of investing!!! Who ARE you??? river -
It was a JOKE! Illustrating inexperience, panic and rashness! Love you Tatnic. riverOriginally posted by riverbabe View PostComment
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I was going by that beautiful picture of the trout, the one where you look to be no older than 18! Maybe that's your daughter or an old pic? My bad for assumingOriginally posted by riverbabe View Post
But in all seriousness, trading options can be a way to just lose your money at a faster rate. If you enter a bad trade, get out immediately instead of then trying to play around with options. Its like driving with 4 wheel drive...it has to be engaged before you get into the mud hole, not afterwards.
NOw just because Dr. Haddad uses options to his advantage doesn't mean you can. He practices a very conservative form of call writing which he has honed over a long course of time, and he knows he's going to lose money on the options trade if he is to be successful. That's a totally different mindset from what novice option traders have.Comment
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I really like Haddad's strategy and I'll tell you why. When he sells (writes) a covered call, he focuses on options with more time value than intrinsic value. If he is to be sucessful, the intrinsic value of the option will move in lockstep with the underlying stock, while the time value will be less than what he sold. So while he usually loses on the call write he really gains because the time value he shorted is less when he covers. Its a pretty simple but brilliant strategy, and at the same time very conservative. This is by far one of the most appropriate option plays I've ever witnessed and its so simple that not too many people could make it work.Originally posted by Tatnic View PostI was going by that beautiful picture of the trout, the one where you look to be no older than 18! Maybe that's your daughter or an old pic? My bad for assuming
But in all seriousness, trading options can be a way to just lose your money at a faster rate. If you enter a bad trade, get out immediately instead of then trying to play around with options. Its like driving with 4 wheel drive...it has to be engaged before you get into the mud hole, not afterwards.
NOw just because Dr. Haddad uses options to his advantage doesn't mean you can. He practices a very conservative form of call writing which he has honed over a long course of time, and he knows he's going to lose money on the options trade if he is to be successful. That's a totally different mindset from what novice option traders have.Comment
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Tatnic, Dr. Haddad's strategy intrigues me too - especially when his share number is so large that he makes a lot of money from just penny gains. Your explanation of his options strategy is interesting. I am going to have to pay more attention to it so I too can see what he is doing in real time. Thank you!
BTW, if you want to see the "real" me, check out "Who are you?" Lyehopper already outed me. But there is a picture of me on my 39th Birthday . river
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FRX sold
Well, my broker came through. FRX sold 1/30/07 at 56.026 for the 7 point short term gain he promised. (Bot 10/31 @ 48.9
. Not hedged.
Nice surprise. RiverbabeComment
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