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Strategies & Market Trends : Option GEMS - Hot Options in Booming Companies...

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To: toothdock who wrote (20)7/27/1997 12:40:00 PM
From: Glenn D. Rudolph   of 396
 
While I have your ear (eye), what is your view on simple purchase of puts and calls, with the simple outlook of trading them for a profit, and never holding until expiration. Toothdock, The writer of an option always has the advantage of receiving the premium. Buying puts and calls and closing them prior to expiration indicates a need for the underlying security to move significantly to become profitable. Time premium disappears and you have two trades. This would not be my approach. I suspect you will loose in the long run. Glenn
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