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

To: RocketMan who wrote (2444)	2/8/2000 6:31:00 PM
From: Poet	Read Replies (1) \| Respond to of 8096

RM, The March series (of any options) is less expensive than the series that are further out, because they are inflated by time premium. Unless you're buying further-out calls because of a specific event (for instance earnings), I usually trade the options the next month out, as I can buy more. I've been trading the March 50's on CREE for a few weeks, buying at support, selling at resistance. When we hit Feb options expiration, I'll move out to the Aprils, barring a market correction.

To: RocketMan who wrote (2444)	2/8/2000 6:35:00 PM
From: Ritch	Respond to of 8096

RocketMan - The only reason I can think of to exercise them now would be if you need the margin from the shares to purchase something else. There is still about $4 of premium in this call and you would lose it by buying the stock. If you do not need the margin, I would hold and not exercise them until June. They will still cost you $85, but you could use the money on something else until June. BWDIK? :-) I think what Poet is referring to is why did you buy the June's if you were going to exercise them early? You could have purchased the March 85's a lot cheaper. (Although no one knew it would run up this fast!) Good Luck! Ritch