All About Sun Microsystems Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : All About Sun Microsystems

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JC Jaros who wrote (39521)	12/20/2000 1:15:20 AM
From: hobo	of 64865

Buying calls is perhaps a "simpler" strategy However, understand that options are "dying assets" the time decay accelerates as as you approach expiration. The last 2 weeks or so this process is more dramatic as to how they lose value. This means you have to be accurate in your predictions as to where the stock will be at a specific moment in time. As a seller (be this of calls or puts), while greater risk does exists than as a buyer (of puts and calls), the time decay works in your favor. An indicator that will assists you a great deal in the timing of when to sell (or buy if you prefer) is Bollinger Bands. Learning to use BB will be of great value when you combine it with options. Here is a site that may help you understand BB: bollingerbands.com coveredcalls.com equis.com e-analytics.com Personally I resist to buy options unless I am fairly convinced the stock will move my way and in that case what I do is buy deep out of the money calls, that way they are cheap. If the stock does move my way and approaches my chosen strike price the return can be considerable.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next