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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: RocketMan who wrote (382)	12/29/1999 9:32:00 PM
From: Jill	Respond to of 8096

It's hard to time the market!!!!! Could try to sell at a high and wait for a correction to buy the leaps, but how do you know what the high is or the correction--how far it will go? DIM leaps are safer...or at the money leaps...usually the MMs will add new higher strike prices as the stock rises

To: RocketMan who wrote (382)	12/30/1999 4:06:00 PM
From: StockHawk	Read Replies (2) \| Respond to of 8096

>>Assuming the stock is still close to its high, is it best to sell the common and buy the leaps at that point, or is it best to wait for a correction before selling the common to buy the leaps? There was a discussion on this in the Q thread, and it seems the more experienced options people favored waiting for a correction, which seemed counter-intuitive to me. << When you buy a LEAP you are, of course, paying a premium. Many factors effect that premium. One of those factors may be the recent history of the stock. A rapidly rising stock tends to have higher premiums, while in a correction premiums may moderate. So the idea is that although you will get less for your stock if you sell during a correction, the money you get may nevertheless allow you to buy more LEAPS. StockHawk