Options Message Board - Msg: 12396106

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Options

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Poet who wrote (233)	12/28/1999 10:33:00 AM
From: edamo	Read Replies (1) of 8096

poet....re: calls buying calls in any oversold issue with decent underlying fundamentals not a bad idea....providing that you don't pay too much to the market for a prem, and your intent is as a longer term position. i'm not an advocate of otm call buys, although it gives tremendous leverage and potential returns if correct. i'd rather go ditm or close atm, pay more, but hold a bit more intrinsic value which allows a spread to be used if desired. stocks like athm and aol are oversold....athm being accumulated and it has had a nice move today in a down market, aol should begin its move shortly. the put selling strategy works better with an oversold stock as the premium can move down about par with the underlying, whereas the call buy moves a bit slower.(unless it is in a super momo)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next