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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Curlton Latts who wrote (23283)	10/18/1999 4:59:00 PM
From: esl	Respond to of 25960

Options could be bad or good all depend on how you use them. For example, you can use a protective put(buying a put option while holding underlying security) to limit the downside risk and still enjoy upside potential. Just like purchase an insurance, can be a risk reducing tool. :)

To: Curlton Latts who wrote (23283)	10/18/1999 7:34:00 PM
From: Ira Player	Respond to of 25960

Sorry to disagree. While you are correct, people like Wade Cook with his inflated expectations are fanning fires in a gullable public, I do not agree that all uses of options by the retail investor are incorrect nor should they be outlawed in general. I use covered calls routinely to enhance returns. As can many investors in reasonably volatile, upwardly trending stocks. Options for the individual investor are negative when they are purchased for leverage, chasing the long bomb, a touchdown in one play. Covered calls are more 4 yards and a cloud of dust. You are allowing the other guy to subsidize your long term climb, based on premiums driven by short term swings in the stock price. Once in a while, you give away some of the upside. But more often, the extrinsic value (time premium)drops to 0, with intrinsic value below the premium you have received. Boom, dust is everywhere. But 4 yards closer to the goal... Ira

To: Curlton Latts who wrote (23283)	10/18/1999 8:30:00 PM
From: Jerome	Respond to of 25960

" that there ought to be a federal law preventing the public from getting ripped-off in options" Public laws preventing people from harming themselves from their own ignorance have usually not been successful People who have owned a stock for some period of time feel that they "know" the stock, and proceed to purchase some options on it based on some intrinsic, undefined knowledge of the stocks movement.This frequently results in a hit to the bottom line. Rarely do you find people who determine the actual cost of the option and its potential for appreciation. Even with a good stock like CYMI there will be significant activity tomorrow on the 35's for different months because people will perceive 35 to be a natural support line. With earnings due out, the BTB and LRCX reporting this week, they will somehow come to the conclusion that CYMI will be above 35 by the 3rd Friday of Nov.(I hope it does but I wouldn't bet on it) Using stock appreciation by itself to attain wealth is riding a one legged horse.For myself I prefer stocks, some covered calls some calls and at time some protective puts. When CYMI gets to 40 I'll be buying some 35 puts to cover my downside. You mentioned "including strategies that amounted to $100's of millions as the plan sponsor for a NYSE company's pension fund)." I hope that you did so profitably. But spending your own money for options might make you a more cautious option investor. Good Luck, Jerome