- Proven strategy - think Warren Buffet
- Lower trading costs or brokerage fees
- Pick great companies
- Ability to ride the up and down price wave
- Very long term perspective - not affected by short term price swings financially
So, I had to devise a strategy that works with my limitations. In this post I went in more details of various ways I could invest into companies. In my experience a short term trading strategy makes lot more sense.
If I do become convinced that a company is a good long term holding prospect then absolutely I am more than willing to buy and hold either LEAPS or the stocks outright. In fact I did buy LEAPS on Nokia Corporation (NOK) last month.
Another reason is flexibility and versatility of using Stock Options compared to stocks. Options offer me many more choices that can be used in a down market while owning stocks works only in rising market conditions. More on this topic in another post.
I would love to hear your trading strategies.