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Replies to #31365 on Cat House

Porgie Tirebiter

10/02/17 11:09 AM

#31367 RE: SunScents #31365

Stock market is like baseball. Everyone loves a home run, but it's base hits, bunts, stolen bases, capitalizing on the other guy's errors and minimizing your own that grinds out the wins.

I keep my stock market investments isolated from my trading money. And in my trading I've pretty much quit flipping stocks and almost the only trade I make now is writing options each week. So rather than base my trades on share price movement, I try to write options that have excessive implied volatility combined with a short time left to exist.

KMI was my 2016 trade, but it's settled into a channel and the I.V. is virtually non-existent there now. I do have the shares and ended up just parking them in my "investment" corner for now.

LULU has been the trade for 2017. But I can't touch it this morning. I got called out at $60 on Friday and I'm all cash today. LULU's up 44¢ as I type this. I'll wait until it drops about $1.00 to $1.50 in a half hour and then write out-of-the-money puts. It does that at least a couple times a week.