Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jill who wrote (531)	1/3/2000 1:09:00 PM
From: StockHawk	Read Replies (1) \| Respond to of 8096

>>Generally I watch what the stock is doing and put in a limit order midway between bid and ask. If it's bumping around, up a little, down a little, I get it. But unless you are buying a huge # of contracts I can't say that a quarter makes a big difference.<< Where to place your order is a subject that can certainly be debated, and I do not always follow the same strategy, but here are some thoughts: If a stock is bouncing around it makes sense to try and shave a bit. However, if you are buying a very strong stock like QCOM or JDSU on a pull-back, it may be wiser to put in your order at the ask or even a quarter higher. If just once a month you miss a run because you were trying to save half a dollar or so, you will likely wipe out all you have gained on dozens of other plays where you successfully bought between the spread. JMHO StockHawk

To: Jill who wrote (531)	1/3/2000 2:24:00 PM
From: uel_Dave	Read Replies (2) \| Respond to of 8096

Thanks Jill for your quick response; I think I will buy the GMST options outside my RRSP /401K first, since I am a newbie. I am still contemplating the different opportunities for Gemstar today on the August calls: GSTHR ( Aug. $80 ) : bid $10.50 and ask $11.25 ; vol = 2 GSTHL ( Aug. $60 ) : bid $18.75 and ask $19.50 ; vol =12 GSTHO ( Aug. $75 ) : bid $12.00 and ask $12.75 ; vol 10 Thanks for the tip on T2, I will contact him later. I am indeed a newbie and have not placed an option order before ( my account is setup for options ) and probably will purchase just a few at a time and then roll them over in the future or exercise them and buy the common. I am thinking of the $75s, however the 60s might be good to have some calls ITM. Any comments ? My broker charges me $28 base plus $2.80 per contract. Thanks, David