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


To: surpow who wrote (1322)12/31/1999 10:07:00 AM
From: Uncle Frank  Read Replies (2) | Respond to of 6516
 
>> If it does run, the profits will be more substantial then buying ITM. If it doesn't run by say March or April one could still exit the position with out experiencing time decay.

An OTM call will give you a higher percentage return than an DIM call, but not as high a dollar return. Delta increases the deeper in the money you get. As far as time premium, August expiry derivatives will lose a hefty percentage by March or April. That's why LEAPS are my preferred vehicle, but cboe only offers LEAPS on a few hundred equities.

Happy Q split day,
uf