+1 Instead of selling the LRCX puts, sell QQQ puts. The volume/open interest is much higher and the bid/ask spread is a penny or two.
I agree ETF/index type trades reduce some of the risks individuals stocks are exposed to. But the trade off is an inability to consider buying the investment. Thus, you are at greater risk of a severe or toal loss, if the market drop turns out to be only moderate, and the correction takes place over just a few months. (Depending on "when or if" you closed the trade). However, I do agree that if an investor is NOT good at selecting specific stocks and prices, and if he has no interest in even considering buying them during corrections,.... then ETF/index type trading is the way to go.
It really is tiresum to hear the same repetitive, self-justifying , crap over and over and over . I have come to think PM is a computer program that is being tested to see how frustrated he can make human beings by ignoring what they say and repeating his position ad-nausiam. If he were at a service counter somebody would murder him.
PM, you keep saying that as a Spread Trader in Indexes I am susceptible to a "total loss" ... I am very much protected from a significant or total loss. Also, just because I trade indexes, I am "NOT good at selecting specific stocks and prices" ... my goals and motivation drive my strategies. I do not want to own stocks ... What I look for is not whether a stock is going either up or down, but whether a basket of stocks will stay within a specified "wide" range. Staying within this range is why I do not use individual stocks... I do not want news events or earnings releases impacting my position.
And of course, because you choose to use ETF's instead of individual stocks, you are not as smart as PM. Only people who do exactly as PM does are equal to him in savvy and capability... everyone else is second best. (I really like that little Yawn face.... it is so apprapo to this thread). NARCISSISTIC PERSONALITY DISORDER http://www.ncbi.nlm.nih.gov/pubmedhealth/PMH0001930/ PERCEPTION DISTORTION DISORDER http://mpddidself-help.com/MPD/Articles/addiction.html
I thought you two were making an effort to be civil toward one another. Sorry to see it didn't work out. And in the spirit of being civil, if DS knew what a lying idiot forexforex or diaoptions or whatever his handle is this week is, he certainly wouldn't be duplicating his behavior in any way, shape or form.