I had posted a small note a while back on how NEWR looked promising given the critical nature of APM given the plethora of online sales channels today . since I was not sure picked a couple of call options back then and now they are in the money and expiring and will accept the stocks given that they are doing a good rate of growth and will be positive earnings shortly.
This is where options have typically helped me immensely when I am not sure to risk capital and wait for a while with some risk of losing the small amount.
The other time I look at options is when hedging/protection and if I feel the stock has run away. I sold a call for ISRG when it zoomed last month and I knew it would come back down at some time of course I was okay losing the stock or some extra gains
PS - I have been making almost 100% returns on my options position despite losing money on almost 50% of my positions
Rajesh
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Hi Rajesh
A great place to discuss options (if you are enrolled in Stock Advisor) is here:
http://discussion.fool.com/Messages.asp?mid=32980512&bid=118…
PS - I have been making almost 100% returns on my options position despite losing money on almost 50% of my positions
Is this the 100% of the premium you paid? If yes, it should be a small amount.
I look at returns over a 3 - 6 month period and typically invest about 15% of my portfolio in various Options . The average reruns I have been making is about 50% across all my total premiums paid . For e.g. picked up 2 ISRG options when they dipped last year and it went up 300% in about 4 months but I also lost all my premium on a company called TRXC because I did not sell it as soon as news of FDA approve hit the press.
But overall I still made a 200% return between these two in less than 6 months.
Rajesh
Options is very tricky so unless you have a lot of conviction dont put too much on a single call.
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