crashy writes bhp calls, page-82

re: crashy writes bhp calls ... cloudstreet options are a limited risk instrument

furthermore, they are illiquid and highly volatile

'tight stops' on options is completely impractical.

if you lose sleep over your position, its too big.

my option 'stops' are based on the underlying stocks resistance / support. when it is clear that your position is wrong, EXIT. dont exit simply because you bought at 43c and 10 secs later its 41c.....or you will just churn your account in no time.

the most you can lose is 100% of an options value, while the most you can gain is unlimited....back in 2000 I was having quite a few trades doing 600-700%......and as many losing 100%......a lay man might think I was doing badly...LOL

the point is, options are a way to limit risk. dont put the money on the table if you are not prepared to lose it.......