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Strategies & Market Trends : Options

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To: SecularBull who wrote (2272)2/5/2000 11:26:00 AM
From: Jill  Read Replies (1) of 8096
 
That's why you've got 10,000 percent. Leverage absolutely. And for instance, DIM calls like the SEBL--how do they regard that as different than investing in the stock? As edamo says, those are pure stock substitutes but more bang for your buck.

Example from last week (lucky one): NTAP was at 98 when I bought cals, now it's 127 15/16. So it went up about 30 points, or maybe around 30% (that's just guesswork, I'm not calculating exactly).

Thta day I bought a slightly OTM Sept 110 call at 22, which is what I did: it's now over 32. That's a 46.6% gain.

Closer in gains would have been better but I like to buy calls with some time premium in them, I feel safer.
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