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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Bilow who wrote (82164)	11/2/1999 12:03:00 AM
From: Scott Bergquist	Read Replies (1) \| Respond to of 164684

Mr. Bilow, a very thoughtful response. While no two traders trade alike, I think some of your remarks bear inclusion into my own methods. Thank you for the guidance re the book. I will review it "in hand" at one of our fine B&M stores in Berkeley (I buy both online and in person). Many of the options for internet stocks are heavily skewed to the upside (e.g. if the stock is trading at a strike price, the calls will be more expensive than the puts.) I think I would probably buy a "further out" call as insurance, at the same time I "sold" (sold "short") the call closer to the actual stock price. That being said, I agree with your assessment of AMZN "time premium" though it is more correctly viewed as a "volatility premium". Since early July Amazon has made a move from (pre-split) the 140s to 82, and back to 178 (89 after split)and then to 130 (65) and the premiums on the options reflect that.