SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : PSFT - 1997 Outlook [closed thread]
PSFT 0.00010000.0%Oct 29 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Chuzzlewit who wrote (286)9/6/1997 9:39:00 AM
From: Melissa McAuliffe   of 940
 
Paul,
Since you are referring to "high rolling options players" I know it wasn't addressed to me. So since I am not alienated I will offer my comments here. I think that both you and Joan are correct in that options is a zero sum game...for most people most of the time. I have been to some of the options threads on SI and find many people who are new to options looking for the hot options of the day, etc. and they will be the ones who lose money. These are sometimes the same people who three messages before asked "what is a call?"--no kidding. Most people who do options look for the highest % return on their investment and thus speculate in short term often out of the money options, which require the least amount of initial investment and thus the highest return if the stock moves the way they hope. I personally didn't understand options when I initially contemplated options on PSFT and only realized it thanks to Joan who responded and helped me realize I did not have enough info. I had read a book on options but it wasn't totally accurate and left alot of holes and thus I waited. Though I would have made a profit to date with my initial plan of buying October's (don't remember the strike price)it was inherently risky due to the limited amount of time until expiration. So (after much reading of MacMillan's book and numerous discussions on SI) I decided to pay more for the longer term in the money options. From my perspective I had no problem spending $8+ for an option when I would be willing to spend $55 for the stock. When the stock price dropped even more (I think this was because I purchased the calls<g>)I never once thought about closing the position since I believed that by January I would make a profit on these. But only because I believe in this company. I guess my point is that there are multiple ways to make money on one underlying stock. Often people only want to do one vs. the other, i.e. long term invest, short term trade, trade options, etc. Maybe because I am so new at all this (though getting older by the hour) I am just interested in looking at all the alternatives. I am personally more comfortable dealing with a handful of companies and knowing them well than jumping all over the place. Yesterday I actually contemplated writing October 70 covered calls but decided against it because I know that if I do this the stock will be at 75. But the ultimate goal for all of us is to watch our money grow...and then decide how best to do this. But I have come to one other conclusion and that is that if one intends to trade options it is a very good idea to know something about TA since these options don't live forever.
Melissa
P.S. I just had to get TA into this message somewhere<g>
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News