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Technology Stocks : Intel: Short Term Stock and Option Trading/Strategies
INTC 39.98-0.4%Oct 31 3:59 PM EST

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To: jmac who wrote (147)3/23/1997 4:47:00 PM
From: Nancy   of 220
 
sorry - i misunderstood - if intc ran to above 140, your judgment is for it to run higher, and you intend to keep your leap - you buy back your 140 c at breakeven of slight loss but sell at a higher strike price (roll out) - you rec'd new prem to offset some of the buyback price, but now your short call is at a higher strike and your long call worths more.

or if you decide to take profit on your leap, you can exercise your long call and let the short call being called away.

I just read someone had a 21K profit on his leaps turn into a 7K loss all because he did not do anything but just sit and watch and hope.
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