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Strategies & Market Trends : Options

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To: leapster who wrote (1188)1/16/2000 7:56:00 PM
From: taxman  Read Replies (2) of 8096
 
i haven't had a chance to read the roth book. does he give a reason for in the money versus out of the money? as i have stated previously, i usually buy as far out in time and as far out of the money as i can.

nothing is certain in the market. any particular purchase of an out of the money option stands a significant chance of ending up worthless. so play responsibly. hold back to have funds available to make other plays or even to buy more options on an earlier play. if your calls are doing well, protect yourself against a market decline by buying puts (not necessarily on the same securities that you have calls on).

i have no idea on how to time qualcomm. in my case i bought out of the money leap calls with a small proportion of my total account so that if it had gone against me i would not have been stressed out. later i added to my qualcomm positon buying another out of the money leap, but again with a relatively small bet.

welcome.

regards
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