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

To: Poet who wrote (1866)	1/28/2000 4:58:00 PM
From: Jeffry K. Smith	Respond to of 8096

I don't believe your figures are adjusted for the split. I believe the correct figure is $100. Jeff Smith

To: Poet who wrote (1866)	1/28/2000 5:45:00 PM
From: edamo	Respond to of 8096

poet....ditm leaps... what you pointed out is a prudent approach, what appears to be expensive is in essence about the same as going long the stock on margin....you will move point by point, and should the stock double and you hold two contracts, you have the ability to sell one, exercise the other... cheap gives leverage, but in a fast market it equates to risk...

To: Poet who wrote (1866)	1/29/2000 3:27:00 AM
From: surpow	Read Replies (1) \| Respond to of 8096

<<Jerry Miller, an options trader I respect a lot, pointed out the QCOM 2002 50 strike LEAPS, currently about $70. >> Poet: Very interesting. Could you (and others too) help me figure out the following: Assume that Q trades in a range of 88-130 from now through early to mid-March. Would it make sence to take a July 175 position, bought ATM on 1/3/2000, which is down 75% from the initial premium, and buy one-half the number of contracts in an ATM position w/ the same expiration month? My thoughts are yes because if Q does not ralley until mid-March, all of a sudden my entire July 175s are nervous and NEED a strong rally. If I roll them down, even though I only own 1/2 the number of contracts, and am not getting as good of a rate of return as the 175s (if there is a really strong/typical Q rally), they are protected if the stock is only around 150. Thanks for the advice. Noah