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 : Network Associates (NET)
NET 195.68+1.0%Dec 19 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: AlienTech who wrote (4917)4/13/1999 2:48:00 PM
From: Just_Observing  Read Replies (1) of 6021
 
I would start by checking which of the options are trading at the bid- i.e, which are the options that people have been selling. Then I would put my order in at 1/8th above the bid. Since the spread is a half, you can save about 3/8ths of a point. That's enough protection for a 3/4 of a point fall in the stock price.

Someone did sell the Jan 2000 calls for 5 1/2 and the Jan 2001 calls for 7 3/8. Place an order to buy the Jan 2001 calls for 7 1/8. If you get filled, please put an open order to sell the jan 25s (2001) for 5 7/8. If NETA goes up to 16 1/2 you will get filled easily. Or if you prefer sell the Jan 30s for 4 7/8 (I would). I would ratio the 30s 10 to 14. In other words, I would sell 14 calls of the 30s for every 10 that you bought of the 15s. That will have you investment nearly down to zero (10 * 7.125 vs 14*4.875). And you will not lose money until the stock reaches 67.5. Anywhere below 67.5, your gains will range from 0 to 15000 for every 10 calls you bought.

You can find lots of options-pricing software on the net. Use them to evaluate the fair price of options before you make any significant purchases. (I've developed a wide variety of such software which you could use but they are not very user friendly). If you cannot find the software, I'll send you some.

Good Luck
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News