How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 503.29

-1.6%

3:59 PM EST

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To: Exacctnt who wrote (29705)	9/17/1999 5:59:00 PM
From: t2	Read Replies (2) of 74651

Exaacnt, I found by using this strategy every month leads to great returns. If I lose, I'm out $1k, but if I win, those 80 contracts provide huge returns. I think you hit the nail right on the head. Even if you are right 25% of time, there should be significant profits on small gambles. Of course one takes those gambles if the "planets align themselves" around expiration date. I used to trade like you with a don't be too quick to take profits strategy and just wait it out. I used to play large amounts near expiration and with a month or two remaining taking way out of the money positions in calls on MSFT. Once i made huge gains on a few of these, i got conservative and started buying stock and still leaving playing with only small amounts near expiration. I still play large amount in options but with a few months to expiration or even leaps. The most important factor is really the commission schedule of your on-line broker. There are ones that put a maximum commission on a trade under a certain value----just like they do for stocks. I don't think there are many. Normally they charge per contract making such speculative gambles on worth taking. When playing 1/8th per share type of options, you need that broker that will cap your commission as long as you remain below the maximum dollar amount. I have one broker that i just use for this reason. MSFT may not have the best stock investment in the sector in the last year or 2 but definately a great options play. Congrats. BTW--"planets aligning" means what i had posted a couple of days ago. That is the dollar dropping against the YEN on thursday followed by a rebound on Friday. It happened. I was not aggressive in playing MSFT simply as i pointed out this morning, i stumbled upon a great put play that i had given up on a few weeks ago and ended up with 550% return due to the stock tanking today---it was like an "act of God". Until this morning, my purchase a few weeks ago was a total waste. A stock tanking on options expiration!! I won't name the mid cap company.

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