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.
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.
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