Sid,

All I wanted to convey was this - If you just keep playing speculative stocks like most of the people in this forum do, sooner or later you will get burned.

PIGS GET SLAUGHTERED.

Citi does not have to go bankrupt for you to loose money on your option - you can still loose most of your money even if Citi goes up to certain point from what you bought. It all depends - timing and expiration dates are important - I am sure you know that.

You and I use option in different ways. I use option as a hedging strategy to minimize my risk whereas you use it to make money.

--When I am buying stocks, I am buying PUT option at the same time, if incase the stock takes a dive.
--When I am sorting stocks, I buy a CALL option at the same time, if incase the stock goes up.

That way I am compromising on profit but minimizing the risk at the same time. However, you are risking less to gain more but without any protection. You have no protection for your 5.5K investment. However, your strategy in not necessarily bad but nothing to be proud of.

I whole heartedly agree that - "Key thing to do is to invest only with the amount that you can afford to loose." - By Sid.

However, No hard feelings - my friend.