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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: RR who wrote (9225)10/22/2000 10:11:31 PM
From: Jim Willie CB  Read Replies (1) of 65232
 
typical salvage value of deepoutmoney calls is 10-30%
but with the opportunity of 2x to 4x profit

typical salvage value of inmoney calls is 40-70%
but with the opp of 50% to 2.5x profit

deepoutmoney calls offer the "ILLUSION" of controlling more shares
this is true ONLY after the higher strike price is surpassed
until then, the much lower delta means you control only a portion of those contracted underlying shares

for what it is worth
with DOM calls in last decade, I have lost on 75% of them
with about 20% of them total losses

Rickster, I fully subscribe to the prudence and power of inmoney calls
I may go just a tad higher than you on strike prices though
with EXTR in the last three weeks I got March100 calls
while common shares started at 112, all the way down to 94
what started as inmoney, ended at outofmoney

/ jim
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