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Strategies & Market Trends : Options

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To: Poet who wrote (117)12/27/1999 10:38:00 AM
From: RoseCampion  Read Replies (2) of 8096
 
I see nothing either, newswise, on ITWO. I'm thinking of rolling them out on this weakness. Which ones are you looking at?

Ooops, looks like we're back to the mid-180s already. But to answer your question...in my conservative way, I would be looking at buying the Feb00 150s at 45 (delta about .75, breakeven at 195). It would be better to sell puts, though - if you could get 22 for the Feb00 175s (delta about .40) that puts your worst-case put-to cost at 153 or so - quite a deal right now.

I'm not biting yet, but if we tank some more, I will be tempted, as I'm vastly underweighted in application software.

-Rose-
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