A.I.M. Users Bulletin Board

[Adam]

Hi Toof, I like your idea of selling covered calls to augment AIM.

About the idea of Aiming Leaps: I did that several years ago. The idea was that some solid stocks were just not volatile enough and the Leap would amplify the volatility. So it was with MSFT, at the time it was trading below 30 and not doing much, so I bought Leaps and AIMed them. That worked out and I made some money on it. But then I tried the same method on a paper company stock and this time the stock and the Leap dropped and the system blew up. I vowed never to Aim Leaps again. AIming individual stocks is risky enough but the Leaps amplify the drops and eventually expire much increasing the risk.