r options tradable, page-11

deang001...

Nothing wrong with your approach, we all need to address our own particular levels of risk tolerance and portfolio weighting.

The secret I feel, when stocks rise to become overwieght in ones portfolio, is to value them on their technical pull-back levels...certainly not the daily price which is reflected in the nightly portfolio balance.

When I tally all trades on CVI, from lows of 6.5c, to recent purchases, I would need to see the price fall all the way back to the 9.4c level just to see me break even on this particular trade...I have not included the options value in this, which clearly reduces this "break even" level even further while they are well in the money.

Such margins facilitate greater tolerance of the swings...which we will always get in such stocks...to the extent I sleep well at night without consideration of being stopped out at the first "show jumpers" event.

Whilst the upside equation far outweighs the downside in my view, I personally see reason for doing absolutely nothing.

Cheers!