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To: 100cfm who wrote (82)12/27/1999 12:05:00 AM
From: c.r. earle  Read Replies (1) | Respond to of 8096
 
Jill,

I also tend to find that it is more advantages to buy calls that are deep in the money. I have been burned too many times where I have bought OTM calls, have the stock move substantially ($25-$30) and more and have little movement on the calls in questions (relatively).

There are certainly many variables that need to be considered but on the whole I tend to favour ITM calls.

Regards



To: 100cfm who wrote (82)12/27/1999 12:05:00 AM
From: Jill  Read Replies (1) | Respond to of 8096
 
Very interesting. I bought May 90s before split, when Gem was in the 80s, and they've done so well for me. So if Gem were to retrace a little I'd be tempted to buy some 75s as they're so cheap. Otherwise, I guess one would go for the 50s.

As with selling puts, I think it's only through repeated experience that you get a feel for it, as if by osmosis

Jill