INTEL- Money Making Option Ideas for Small Investors Message Board

STOCKTALK

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 : INTEL- Money Making Option Ideas for Small Investors

INTC 41.50

+5.0%

Oct 28 3:59 PM EDT

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Winsurfer who wrote (190)	3/16/1998 5:17:00 AM
From: Sean Whitehead	Read Replies (1) of 201

Hi, I am new to this game of options. I had quite a scare with my first attempt. I bought VNLAB for 15 last August when the stock was at 100. As you can see, I got stung. However I bought a lot more earlier this year at 2.5 and got out when they went up to 8.0 These are a lot more more volatile when the stock is moving and provide more opportunities, however I wasn't sleeping at night. I would like to know where I can look for advice on investing in these types of options and what are good strategies to follow. Why would you not buy 100 contracts of VNLAB at 2.5 as opposed to 15 contracts of LNLAP at 17? I understand the timimng issues and the fact that the Intel stock is unlikely to be at 110 by Jan 99, but is it sensible to trade on the options volatility? Another question, typically how much does an option price move per dollar rise in the stock price a) when the call price has not been reached, b) when the call price has been reached. Also shouldn't the price of an option plus it's call value be equal to the current stock price plus some premium. In the recent intel stock rally I saw some calls (50 for Jan 99) valued at about 30 dollars when the stock was trading at 94/95. I do not understand how this can happen. Sorry for such a long reply, but your help would be appreciated. Regards Sean

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next