I sold 20% of my AYX holdings and purchased AYX options with the money, some today, some at the end of market yesterday. AYX is down 3% or so further as I write this from when I purchased those options.
After ZS went on sale, I did the same. It is down further as well. On paper, as of today, I am a blithering idiot.
I don’t mind the volatility of these stocks, and I don’t even mind the volatility of the options on them, so this works for me. It surely isn’t for everybody. As the great mungofitch reminds us, leverage is the number one way smart people go broke. He isn’t a fan of these sort of stocks either, unless I miss my guess. But here I am, looking at sharp drops and responding by adding leverage.
That’s what I’m doing right now. I won’t discuss the specific nature of the options on this board, as that would be off-topic.
Cheers,
Wot