Hi SP
Options are gambling, straight and simple. It is not investing. In order for you to win, someone has to lose. Only the " house " makes money consistently, unlike stocks where you have an ownership stake.
The money I have made since November has been very speculative and in fact the opportunities are harder to find now.
Having said that, options can be used with AIM
In most cases you want to sell PUTS or CALL 6 months or further out. ( I am assuming you understand options here, if you dont, then dont even bother reading the rest)
So lets say a stock is at $32 and you are willing to sell 100 shares at $35.
You want to sell a call so it gives you enough money to bring you to your NEXT sale price ( 5% higher than $35 would be $36.75 ) or $1.75 + commissions.
The reason you want at least that much money is because a security can go above $35 and then pull back and not get called away from you and you can then miss the AIM directed sale as the security crashes to $20.
Doing it my way, you would do the AIM directed sale above $35 and if the 100 shares get called away, between the strike price and the premium you take in, it will be at a price at the NEXT AIM directed sales price of $36.75
You can do the same thing on the buy side, selling PUTS.
Hope that explains it.
Toofuzzy
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