Comments on: Current Portfolio – September 5, 2008

By: stockscreen

stockscreen — Mon, 08 Sep 2008 05:11:07 +0000

I guess it’s time to add more to your long positions.

By: Alex Fotopoulos

Alex Fotopoulos — Sun, 07 Sep 2008 22:39:19 +0000

Kadena, I’m not sure what you are hedging against with stocks, unless you mean diversification itself is hedging. Options represent the same risk reward now as any time (VIX being equal). Buying or selling too many options can be good or bad in any market. Selling/buying options in a trading range, done correctly, would make this the exact right time to be in with options – reducing risk and increasing chances for gains.

By: kadena

kadena — Sat, 06 Sep 2008 15:09:33 +0000

Alex, stock ownership is excellent hedge in questionable times. As long as the stocks are diversified, don’t go bankrupt (if one does, the others will carry you) and you are willing to hold them for a really long time, then you can rest easy. If, you start to be unhappy holding long stock, and get out with losses, this whole process will be turning against you. i’m avoiding options right now. Bought some more Ford stock, it’s cheap— planning future covered calls.

By: Options Strategery

Options Strategery — Sat, 06 Sep 2008 05:16:55 +0000

Tough week all around. A nice recovery today, especially in the financials.