How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 478.47

-1.0%

Dec 12 3:59 PM EST

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To: Jill who wrote (21054)	4/21/1999 8:11:00 AM
From: t2	Read Replies (2) of 74651

Jill, It is easy to see why short term call option buying is not the best strategy at this point. That is why I sold my May 80 calls yesterday. Instead, i had been buying leaps 2001 just like taxman. You avoid all the short term volatility which is just pure gambling. I say gambling because momentum investors were not willing to play the earnings release this quarter. It is like flipping a coin. I decided that i want to be able to capitalize on the increase in the stock which is certain (IMHO). However, short term it just like being in a casino. Going into January earnings was no gamble and was a pretty good time to try short term call options. Now is a great time for long term leaps 2001. For May calls--the risk was a bit too much. After all it is a risk vs. reward decision. On leaps 2001, the risk appears minimal in my opinion but the rewards look pretty good at this point. July call options might be great about one month prior to expiration simply due to the buildup due to the Office2k revenue in the quarter. Such a buildup could cause a huge run-up and make short term call option traders a lot of money. Another opportunity may arise if the stock heads down due to the trial. A drop down to mid 70s would signal a buy for the july calls. Otherwise you are better off waiting until mid June. That is why I have stuck to holding lots of shares along with some leaps.

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