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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (17758)	6/18/1999 8:48:00 AM
From: Benkea	Respond to of 99985

Jim: "I may play a few longer term ones ( leaps ) but without the idea of jumping in/out every few days." Talk about paying a time premium! Also, leaps are much more illiquid than nearer term options. I agree spreads are big, but the moves are HUGE. IE: I can go up or down 20 to 60% easily in a DAY with options. All this takes is a couple of points on the QQQ. To me, it seems even harder to short a huge amount of QQQ equity just to get $1 or $2. If you are confident in your forecast, that same $1 or $2 can be made with a much much smaller investment (speads & commissions included). But, I do see your point. Options are certainly risky, but so is shorting the QQQ.