Finally using verticals

Discussion in 'Options' started by Arnie Guitar, Apr 13, 2006.

  1. Thanks again to ChrisM, and others, for the suggestion for freeing up more capital to take other positions.
    At first glance, I thought, hey, I'm not getting as much profit, but I gotta say, the comfort factor, and my sleep at night are greatly improved.
    I like doing spreads on both sides of the underlying.
    I've been reading about diagonals and am going to give them a try next. I like the idea of buying the next option up/down several months out, and continually selling the next closest to the strike against it. I still have more studying to do, though.
    I am currently stock-less, nothing but option positions. It's an odd feeling. I see now how much better bang for the buck this offers. It feels like a much more efficient use of capital. Yes the risks are still there, but it is much more interesting and dynamic.
    My enthusiasm and interest are the highest they've ever been.
    Yes, I will keep the enthusiasm in check.

  2. Hi Arnie..although I'm not stockless (yet) I'm getting to the same position you are and I agree if feels sooooo much better. I've had losses but they are small and my gains are as good as when I traded stocks, congrads and best wishes for continued success!
  3. Hi Donna,

    Thanks, and all the best to you.
    I've also appreciated your posts.
    I tell ya, it is quite an education being here.
    Sometimes very humbling.
    It's cool that others with so much more knowledge take the time
    to post, I get so much from them.


  4. Just be careful you don't leverage up too far with options and/or option spreads. It's easy to get carried away and put too much money at risk when transitioning from stocks.

    Been there, done that, wearing the t-shirt.