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Strategies & Market Trends : Options

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To: Poet who wrote (6696)4/19/2000 3:15:00 PM
From: Steve 667  Read Replies (3) of 8096
 
POET,

I prefer further out! You have to put a little more money up front, yes. But (for May) you pay much to much premium penalty and it deteriorates too fast day by day. I like to go in the money about 10 or 15 points, because if it goes against you say 10 points, your option only goes down about 5. So I like the July 85 or 90. Even if you put up $30,000 remember you are going to bail if it goes the other way, so your really looking at risking $5,000. The upside is much higher. That's just my thinking.

Steve 667
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