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Technology Stocks : Dell Technologies Inc.
DELL 117.44-1.6%Nov 20 3:59 PM EST
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To: Sig who wrote (141829)9/10/1999 8:18:00 AM
From: TRCM  Read Replies (2) of 176387
 
Sig - Re <<<invest about the same amount in each>>>

If you are buying out of the money options on two companies with the same expiration date, and one is considerably more expensive than the other, you are paying for volatility...It really depends upon your investment objectives on how you should approach such a trade...just because one option is much more expensive, doesn't mean it should be viewed as a less attractive purchase...The are many variables to consider in such a trade, and at these two options seem relatively hard to compare...Many option players prefer to play only in the money options were your delta is much closer to one, meaning that the option is moving in value almost penny for penny with the stock price...If you are equally bullish on two companies, then diversification can be beneficial, but by no means is it a hedged bet...both stocks can be beaten up on the same day.
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