Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : MindSpring Enterprises (MSPG) Another ISP. -- Ignore unavailable to you. Want to Upgrade?

To: hasan syed who wrote (1351)	9/8/1999 1:15:00 AM
From: Katz R Us	Read Replies (2) \| Respond to of 1434

hasan, I totally agree---I ALWAYS buy options as far into the money as I can afford. I learned the hard way about buying out of the money. And, if you compare the projected results, i.e., 25 vs 30; 40 vs 45, etc., you always pay a cheaper price in the long run by going deeper into the money. I also like LEAPS, although they are VERY BORING!!! Barbara

To: hasan syed who wrote (1351)	9/8/1999 2:12:00 PM
From: PeterR1700	Read Replies (1) \| Respond to of 1434

Hasan - thanks so much for getting back to me so soon. Re: the DE's or DF's. I was looking at the DF's (Apr 30's) so I expect the DE's are April 25's. Re: the .95 vs .55 delta. If I understand correctly, the delta factor is the multiple by which the option price increases proportionate to the share price. Thus an "expensive" option like the 25's has a higher delta (multiple) than the "cheaper" 30's. Is this correct? Also, I believe MSPG will have reported by the 3rd week in April and I've been encouraged to keep that in mind. Re: in or out of the money. It is tempting to buy the cheaper options that are way out of the money. Consensus (yours and others) is that is a fool's paradise. The real question, and I hold you harmless, is whether you would buy the April calls at this point? My "feeling" is that mspg and the other isp's are way due for a move. I've owned elnk for a couple of years and have grown somewhat familiar with its trading patterns. MSPG is a newer idea for me - and truth be told - one reason i'm considering options (MSPG) is to average down my cost on my existing shares. (Bought a couple of months ago @ $44.) Anyway - when you have a moment, would love to continue this dialogue. All the best, Peter