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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Eleder2020 who wrote (23527)	7/29/1999 11:59:00 AM
From: eric sahlin	Read Replies (2) \| Respond to of 29386

Thanks for the post Ed. Just wanted to add a note that "no volatility" can also be very profitable to an options player. If you write a call and write a put (which is sometimes called a "strangle") you are basically betting on no volatility. The less volatility, the better your strangle position is. Ed I think when you described "buying both directions" you meant the following: Reverse the above position (buy a call and buy a put; you should strategically select exercise prices on the call and put) or a "straddle" then you are betting on high volatility and you hope the stock price moves violently either up or down. Of course there are more details (like optimal strike prices etc) and other types of postitions you can create to take advantage of no volatility or high volatility. Some possible hedging alternatives if you hold Ancor stock: Assuming you own Ancor stock LONG: Some protective "hedges" might be the following: While holding the stock long, buy a put. This way if the stock price falls your long position is losing but you are gaining on the put (your put option gain could be quite impressive if the stock falls quickly and alot). Another hedge if you are long might be: write a call and hold the stock long. By writing the call (you are betting that there will be little stock price volatility compared to if you hedged by buying the put and holding the stock). These are just basic techniques and I do NOT claim to be an expert options trader. Options are risky in their own right but can be very useful in hedging or in other words reducing your risk. Are there any February 2000 ANCR 35, 40 or 45 calls out there? These sound interesting to me. Later Eric

To: Eleder2020 who wrote (23527)	7/29/1999 12:13:00 PM
From: eric sahlin	Respond to of 29386

An options game: About a month ago, Ameritrade was offering a free CD game called "Darwin..." that helps you practice creating options positions and trading options. The game is a good learning tool. They send you the CD through the mail along with an account sign-up form. Ameritrade only makes 8$ commission on stock trades but about 35$ on options trades, so guess why they want to teach you how to trade options for free? If you go to Ameritrade's web site you can submit your info to have the CD sent. Eric