Zeev's Turnips - No Politics Message Board

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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: FR1 who wrote (4708)	11/11/2001 1:03:30 PM
From: Timetobuy	Read Replies (2) of 99280

They have usefulness. I buy large blocks of deep itm options with time if I want to exercise the stock later in a market that I think will go up significantly. When the time approaches, I sell part of the options and use the money that I made to exercise the other shares. I also buy shares, but if I really want a significant position and I'm pretty confident of the valuation and move several months out, the leverage of the deep itm option gets me the shares at a price that's locked in now. I use DEEP itm options because there is usually little premium even with time left on them. (I don't typically buy leaps). Of course, if I'm wrong, the option is going to move one for one with the stock. That's why I'm careful with entry points and always buy time. Short term is speculation. Nice move on brcm. Never thought of playing a stock that way, but I'm not one to use margin either. What leaps are they? The recent highs of spring were around 50 or so. If it breaks above there, you're probably going to see prices much higher than 60. Unfortunately, I sold my brcm shares at 30. Sigh. I guess I'll have to pay more for them if it ever does decide to pull back.

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