Jack what was the thought process by doing a buy-write on rimm like that?
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Real-time trades
- Thread starter Jack Haddad MD
- Start date
Jack what was the thought process by doing a buy-write on rimm like that?
My plan on RIMM was to have my stock get called at 70 while I pocket a premium of 1.35 on the Oct 70 calls. If RIMM does not get taken away, I'll keep the entire call premium of 9.80, and roll into the 70 November calls.
Earnings report was not bad at all.
Earnings report was not bad at all.
Quote from Jack Haddad, MD:
HI Seth,
My trading behavior goes against the priniciples of many. I don't set stop losses to bail out of a trade, rather i like my trades to pan out. Yes, weird but it has worked for years.
First, I never trade anything that I'm not willing to hold. Second, if a particular trade goes against me, then I resort to dollar cost averaging. This strategy has done me the justice that I deserve.
I will comment on my trades as I execute them.
Jack
This thread belongs under the "Journals" forum, in my opinion. That said, it appears from your posted remarks that you are a long-term investor who likes to dabble around with what is apparently a very substantial amount of available capital. There's nothing wrong with this approach, but it's certainly not contrarian to what most people do. It is, however, contrarian to what most "traders" do.
Of course, most traders lose money, so acting contrary to what traders typically do, is probably a wise decision.
Quote from Jack Haddad, MD:
My plan on RIMM was to have my stock get called at 70 while I pocket a premium of 1.35 on the Oct 70 calls. If RIMM does not get taken away, I'll keep the entire call premium of 9.80, and roll into the 70 November calls.
Earnings report was not bad at all.
Seems That from the daily...rimm is going to 100$ in 2 Months..
IMO
Intraday seems Like a buy here...
GL with it Jack
How many years has then been successfull? I ask this because I have been in the markets since 99 (not long, but long enough to learn some brutal leasons), and I know TONS of people who averaged down (and never used stops) about 5 yrs ago and they lost everything. And they rationalized all the way down that "well, it's a stock I want to have". Some were close to retirement, and wiped out their entire retirement savings. They never expected it, because their "methodolgy" had served them well for many many years. Too well in fact.
If you've only been using this approach for 2-3 years, then you need to rethink this some, as almost ANY long type strategy would have worked for most stocks if held long enough (assuming the stocks followed the market, which they usually do as a rising tide lifts all boats). particularly if one was selling calls or averaging down. Not that I am an belittling what you are doing - it is valid and no doubt times are quite good for such an approach (and they may remain so for a long time). But I would not neglect the risk management - predetermine what conditions would signal to you that your current market model is no longer valid.
Rewind to 1999.. pick almost ANY stock.. and see what happens with any averaging down system w/o stops over the next several years. Adding a simple 100 or 200 MA crossover as a filter would at least stop the bleeding.
If you've only been using this approach for 2-3 years, then you need to rethink this some, as almost ANY long type strategy would have worked for most stocks if held long enough (assuming the stocks followed the market, which they usually do as a rising tide lifts all boats). particularly if one was selling calls or averaging down. Not that I am an belittling what you are doing - it is valid and no doubt times are quite good for such an approach (and they may remain so for a long time). But I would not neglect the risk management - predetermine what conditions would signal to you that your current market model is no longer valid.
Rewind to 1999.. pick almost ANY stock.. and see what happens with any averaging down system w/o stops over the next several years. Adding a simple 100 or 200 MA crossover as a filter would at least stop the bleeding.
Hi Kalzayani,
Today's selling on RIMM is overdone in my opinion. Once again a 57% surge in revenues is not bad.
Today's selling on RIMM is overdone in my opinion. Once again a 57% surge in revenues is not bad.
Hi Jason,
I've been employing the "dollar cost averaging method" along with Covered calls for almost 9 years. I have been very successful. I regretably confess that I make 3 folds more in the market than what I make in my private practice plus 2 other satalite practices.
My hear goes to those who lost with some of the great companies (Enron, ECOM). One must question, did they hedge their shares with anything to protect the downside? I met with lots of amateur investors/traders who were in the market from 1997-2003. They had no idea on how to buy in increments and on pivatol points.; They jump on a stock in an "all or none" fashion.
I've been employing the "dollar cost averaging method" along with Covered calls for almost 9 years. I have been very successful. I regretably confess that I make 3 folds more in the market than what I make in my private practice plus 2 other satalite practices.
My hear goes to those who lost with some of the great companies (Enron, ECOM). One must question, did they hedge their shares with anything to protect the downside? I met with lots of amateur investors/traders who were in the market from 1997-2003. They had no idea on how to buy in increments and on pivatol points.; They jump on a stock in an "all or none" fashion.
Added 2000 shares of INTC at 20.25, and wrote 20 OCt 22.50 calls at 1.95. I'm now holding 16,500 shares.
Folks,
Keep a close eye on DRL as it bottoms before the release of their re-instatements. I's like to buy again at 12.75 and accumulate thereafter.
Keep a close eye on DRL as it bottoms before the release of their re-instatements. I's like to buy again at 12.75 and accumulate thereafter.