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


To: StockHawk who wrote (441)12/31/1999 10:59:00 AM
From: Jill  Read Replies (2) | Respond to of 8096
 
Hi Stockhawk...welcome from me too

To any options veteran--Rose, edamo, Pal, buffolo, can you explain something to me:

Here's UF's post on why he bought ITM instead of OTM on GMST:

Message 12427337

He says you always get more for your dollar. This certainly was not what I saw in the very unusual (admittedly) runup of QCOM recently, where buying OTM calls meant they would pop and go way up as they quickly became ITM and then DITM...the thing was on a mad tear, and those risky investments seemed very lucrative. Not something a lot of people would happily do, and not something you can often do, but...it cant' be that you always get more buck for your buck on ITM

Can someone explain what is eluding me?



To: StockHawk who wrote (441)12/31/1999 11:23:00 AM
From: Poet  Read Replies (1) | Respond to of 8096
 
Thanks, SH and taxman. I'd bought 10 Jan 640 QCOM puts at EOD yesterday, will call to get out the position before 1 PM. I'm amazed at how strong QCOM is today -- trading at 700 presplit! yikes.