My friend suggests buying China...and I agree with him. Since I have done so I have reaped benefits, buying into CEO at 91, selling lots at 105 and 118. Recently I bought ACH (again recommended) at 45.80 then at 42. I sold 3 lots of this, ones at 49, 52, 66. Made lots of money. But the bad thing was I had to put up a lot of money. China is volatile market here. In the long run it is going up, due to valuation reasons between Yuan and dollar and Chinese Olympics. My friend says it will be a good market at least until the end of 08. Well want to get in on the fun and make money! Sure, lets get into the options then. We will put less money up and get a similar return. I currently think ACH is too high. So technically I should put it, but I'm a novice at options. I will wait for it to go down. I'm not sure which one to get into here, but I know since this month ACH has went from 34 to 66. Now I think it will pull back, wait awhile and go again. Here's why I'm so intrigued by this. If these companies continue to act nuts, why not buy a really high call, risking nothing, and getting everything. My point here is ACH-IL, a sept 60 call, was selling for about .30 cents on AUG 23. Today it will fetch $10.00. Investing in ACH from those times you get a 100% increase in value. Here you get a 1000/30, or a 3333% gain.
Yes it's easy to look back and say, if I would have done this, look at what I would have got. But Chinese options on ACH, CEO, PTR, CHL, BIDU could all be good. I'm looking to buy some contracts on a pull back.
Subscribe to:
Post Comments (Atom)
2 comments:
i read it. again you playing with options. To me, this will never change, Option is gambling not investing. only one exception is using option as if you buying insurance for your investing company, which rarely worth it. But experience is everything.
Options OTM are a gamble, more so than ITM. If you want to collect the movement of the stock most similar to that of the stocks you own...buy (Deep in the money) DITM options. You will control more shares for less and make the same amount of money. That way when the options expire you can sell them for money or if you really want to own them excercise the option and buy them.
You would be a perfect person for options ITM since you are a value investor. Do some homework on it.
Post a Comment