A.I.M. Users Bulletin Board

[Adam]

Hi Ray, Several years ago I was reading the now discredited Lenny Dykstra on trading deep in the money calls. I wanted to apply this method to AIM and my thinking was to take a non volatile stock like MSFT and buy deep in the money Leaps and AIM those. The idea was that the Leaps would amplify the volatility of the underlying stock and work with AIM.

I did that with a Leap on MSFT and the system worked well and I made some money on it before the Leap expired. Then I followed Dykstra's advice to buy Leap on a stock of a paper company (I don't recall the name now). This time the stock dropped and following AIM I doubled down on the Leap and unfortunately the stock and the Leap did not recover before the Leap expired and I lost all my gains with this method. Never went to this method again and I was glad I did not lose more.

The bottom line is you have to be very careful with AIM that the stock is able to recover or you can lose big time with AIM.

Adam