- Consider it a long-term speculative play. Define long-term in multiple years, not months.
- Look away for no more than 10 to 15 trading days, preferably fewer.
- Allocate no more than 5% to 10% of your portfolio to the stock. How much depends on your risk aversion, size of portfolio, income, etc.
- Write at- or slightly in-the-money calls against at least 50% of your position.
- Sell at least 50% of your position on pops (like the one we're seeing now) or simply watch shares get called away.
- Add to your position on dips, such as the one Pandora just rebounded from.
Pandora Popped, But Will It Crash Again?
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