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Technology Stocks : INTEL TRADER

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To: MonsieurGonzo who wrote (2475)4/20/1998 4:44:00 PM
From: smolejv@gmx.net   of 11051
 
what I picked out from what Steve said, my way: the decision for a certain stock and a LEAP on it does not automatically make the stock get on hind legs and start up the trend slope. Trend or no trend is ORTHOGONAL to the question stock/leap/shortm-term options: here you just decide on the your point of compromise between pain and reward.

Corollary: i have yet to see a case, where having a stock made money, and having LEAPs did not (and vice versa). Maybe Im just subconsciously picking these kind of thingies.

So to keep a certain sensible margin of safety (ah, Ben Graham ...) check the trend of the underlying and its past performance in terms of volatility.

My approach - PUT SIMPLY! - : hell, on the long run ANY stock got over the present-day level. In other terms fight high(er) volatility by longer times. Its actually in the mathematics, that earned two guys a Nobel prize last year (remember?)

Janko
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