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Technology Stocks : Gemstar Intl (GMST) -- Ignore unavailable to you. Want to Upgrade?

To: Eric Jacobson who wrote (807)	11/12/1999 2:16:00 PM
From: Dr. Id	Respond to of 6516

To chime in... You can buy calls to leverage, but I like selling puts. For example, you can sell some puts above the current price rather than buying the stock outright. That way, if the stock is above the price they expire and you keep the premium. If the stock is below the strike price, you still keep the premium and the stock is put to you (stock that you wanted anyway). The danger is that the stock can run up and away from you (I sold QCOM puts for November with the hope that it would get put to me, and its LONG gone!) Jeff

To: Eric Jacobson who wrote (807)	11/12/1999 2:28:00 PM
From: ratan lal	Respond to of 6516

I show a quote of 22 1/2 for QLFER. is this the option u r reffering to and what was the price of GMST when u bot at 17 1/4. Thanks

To: Eric Jacobson who wrote (807)	11/12/1999 5:21:00 PM
From: 100cfm	Read Replies (1) \| Respond to of 6516

ej, i will to defer to uf or others. i am no option expert. but at 17 dollars for a may call with the stock at 95 and nothing but good news ahead, i think its agreat buy. i bought more may 80's today. they were only a 3 point premium over the 90's. 100

To: Eric Jacobson who wrote (807)	11/12/1999 6:53:00 PM
From: Jill	Respond to of 6516

Hi, as someone who submerged herself in Qualcomm calls this week, and took a position in GMST recently, and GMST calls earlier this week (May 90s when they were OTM, now they're ITM), I can say that... I love PMS Witch's post about options over on the MSFT thread, and I paraphrase here: 1) If you think a stock's going up a lot, buy calls 2) If you think a stock's going up a little, sell puts 3) If you think a stock's going sideways, sell covered calls 40 If you think a stock is tanking, buy puts. Qualcomm is going up a lot, so people this week were buying OTM calls and watching them pop and turn ITM in a day or two. It was enough to make you faint. It's exciting but could get dangerous soon. Gemstar is going up but not at that pace right now. Maybe later. As another poster here said to you, selling puts is also a nice way to scalp $, or get equity cheaper if you want. So you might want to buy calls but not that far out of the money, or even better yet, slightly in the money, and May is probably far enough out to make a good profit (though one can never tell!) Qualcomm is another story, and I hardly can believe it myself, and I learned more this week on the Q thread than in the last 6 months at SI!