Friday, October 19, 2012

AAPL calls

I filled out my AAPL $800 2015 call position; my average buy price is $70.99/share.  Again, the volatility on these out-of-the money calls is dizzying.  Daily price movements are somewhat mitigated because the strike date is so far in the future, but it's still a roller-coaster ride.

I think using an investing strategy which fits your personality and habits is an important factor in staying profitable and solvent.  In this case, that means a combination of being able to see volatility without overreacting and panic-selling, and also not under-reacting and being willfully blind to a risky position.  I definitely experienced both of those during the 2008/9 crash.