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Technology Stocks : How high will Microsoft fly?
MSFT 492.06+0.2%3:59 PM EST
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To: J. P. who wrote (13248)12/17/1998 8:03:00 AM
From: t2  Read Replies (1) of 74651
 
Wish they had February contracts already. January are too close
in with high premium and April are too far out with high time premium.

This had been my problem for the past few weeks also. I already had purchased (in Sept and Oct) the Jan 120s and April 130s. The April 140 and 150s just started trading about 2 or 3 weeks ago. I did buy some Apr 150 and Jan 140 recently.

It gets complicated because earnings are expected after options expiry with a possible stock split. I am going primarily with Apr 150s and Apr 130s because I think it is worth the premium. The stock split could be announced after earnings like last year and OFFICE2000 release is expected in the first quarter (and MSFT presents its case). The premium for the Apr 150s has dropped a bit in the last week or so.
I am looking to reduce my options load if the stock pops up a few more dollars in the next week or so (and buy some more shares possibly). To me buying shares is equivalent to holding cash in my portfolio.
I hope everyone is aware of how risky options trading is. Luckily I had a great run last year with way out of the money MSFT (and some DELL ) calls. This is why I willing to risk some of my gains.
Is there any chance of trading in February options starting?
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