A.I.M. Users Bulletin Board

[Toofuzzy]

Re: options with AIM

I use options three different ways.

1) I sell options equal to the amount I would sell.

If I own 1000 shares I might sell one option at the next trade price ( put or call ). Ideally the option premium takes me to the second trade price.

2) I sometimes ladder my options at consecutive trade prices leaving enough uncovered for a few sales

3) at the bottom of the market when I am running out of cash if a $60 stock dropped to $30, I may sell my stock ( even if at a loss ) and buy $15 call leaps freeing up cash to continue to buy lower. I pretend I am still holding stock shares.

Jeff Webber on the other hand trades the actual option prices. Unfortunately I find his book almost unintelligible.

Toofuzzy