O.T. For goodness sake, don't get in the options if you
don't understand them. And I'm not sure practicing on
the STBI options would be the way to go... don't take
this the wrong way but here is my two cents:
Can I ask why you are interested in these options for
a stock trading in the $7 range? Options are good for leverage,
but for a small cap stock like this, STBI gives you leverage
into 3Dfx at a reduced price. And the STBI options are going
to trade low volume if you are not careful. So they'll get
you with the spreads on the way in, and the way out. (I hate
it when they do that... skim your profits ... what I dislike
most about options.) With the stock, you can get the flat
discount rate ($20 or less these days) in and out.
I've traded and made good money on the 3Dfx options for position
plays when this thing kept bouncing off of $17 so predictably.
But then again, I follow this stock religiously. Right now,
buying the options may be a 'bet' 3Dfx will have a blip
up/down in a shaky market. Unless you know something we don't,
why not buy and hold STBI? The options don't look good here
to me, but that is just my opinion.
If you still think it a good play, could you post it here so
the regulars here could comment?
thanks and good trading,
Waldeen |
