What do you guys think about this strategy? Or is it better to own the stock if you are long term bullish? http://online.barrons.com/article/SB50001424052970203870804575648803208874596.html?mod=BOL_da_spd
Know that for last 18 months . Have been buying C leap as substitute for stock Cheaper - lower risk & much higher return on risk. Been very good for me . Start off with Jan 11 leap back in 2009 but am trading Jan 2013 . .
i have 200x 2012 5C, looking to add some more to get a $10k position. It's part of my 401k account I like citi a lot, it went from one of the worst managed banks to a new kid on the block with a lot of potential. With all the good talents that flocked to them over the last 2 years and the government finishing up the stock sales early next year, i think it's a good bet considering the option premiums are relatively cheap on it.
The first sentence in the link says it all - CHEAP STOCKS AND LEVERAGE are a great combination for making money, or a recipe for a financial bomb