ClutchCityAg said:
oldarmy1 said:
Another lotto is $NET Dec 24th $0.25 calls. Markets engage for a rally that sucker rips upward. All of these are super high risk so not for anyone building capital stage.
What size position do you usually do for these high risk plays? For example, If you have a 50K account, how much are you putting on a play like this vs. a play like GILD?
My rule of thumb is never put more than 5% of your account value on one sided options plays.
I will put more into multi leg options strategies.
GILD is a tad different for me. Between merger talks, the technicals and the trading, I'm in for a lot. And I have my sells and strategy set to exhaust 4800 of these suckers.
I also have hedged a tad on it.