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Technology Stocks : Dell Technologies Inc.
DELL 117.44-1.6%3:59 PM EST

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To: Sig who wrote (141829)9/10/1999 7:28:00 AM
From: Patrick E.McDaniel  Read Replies (1) of 176387
 
Sig, buying options are like buying stock but only with more risk and more reward.

Comparing the options of 2 different companies is like comparing Dell and Compaq stock. One may be more expensive but more up faster while the other is cheap and stranded like a beached whale. Buying a high priced option can also expose you to more risk if the option doesn't more up.

The OTHER thing that matters on each option is what the option will be priced at a specific time down the line. Then, based on future pricing, you look back to each purchase and decide which option will yield the greater gain while exposing you to acceptable risk.

You MUST look at the conditions leading to the selling of the options as well as the purchase conditions.

Of course, stocks are less likely than options to end up worthless. (Unless you own Compaq).

:o)
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