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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Chas. who wrote (1658)	10/16/1999 12:24:00 AM
From: KFE	Respond to of 2241

Chuck, when I go to ETrade options to get a quote for a security (RTN.B) it shows Nov calls 50... bid-- ask 1/4 the actual stock price is say 26.....why isn't the strike closer to the actual price ? There are options on RTN.B with strike prices from 20 to 80 in the November series. The quote on the Nov 50 call is 0 bid 1/4 asked. can I buy some options monday for rtn.b at nov call strike 50 ?? comments I am sure that you could buy all the Nov 50 calls that you want for 1/4 on Monday but I don't think that you want to. The stock would have to double in five weeks for you to make any money. Even if you thought that this could happen then other strike prices would be a better play. The Nov45's are the same quote as the 50's. The 40's could be bought for 5/16 and the 35's for 1/2. Options can provide an effective way to leverage a directional play with limited risk but you should have an understanding of the characteristics and risks of options. The CBOE web site has education material available and would be a good place to start. Regards, Ken