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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: David Wiggins who wrote (7095)	9/1/1999 12:28:00 PM
From: Ira Player	Respond to of 29987

I am trading these within an IRA. Option purchases are not allowed and in this case, I wouldn't buy them anyway. When the implied volatility is this high, I prefer to be the beneficiary, rather than the victim, of the decay in extrinsic value of the option. Selling puts is the only other option trade allowed within an IRA, but the CASH to exercise must be in the account, removing all leverage. Since I could receive a higher premium for the call and the increased transactions costs are covered by the increased premium, I'd just as soon own the stock and rent it. I prefer having a buffer to the underlying equities performance. I won't "make over 100% if GSTRF is 35 in DEC", but I can get 36 or 37% by doing this again in October (if conditions warrant), with significantly less risk. Good luck in your options, Ira