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To: techguerrilla who wrote (5023)2/25/2000 2:20:00 AM
From: Jim Willie CB  Respond to of 35685
 
the one area I consistently disagree with VoltStrawHat is with choice of option strike price

I maintain the April260 will perform on pct-basis just about equally as the Apr300 for JDSU or any other stock

with Apr300 you got pitiful delta
(delta is amount option rises per QCOM share point rise)
sure you buy more contracts
you better buy more contracts with the low delta
lower strike price offers better downside portection
the higher strike price will outperform only after JDSU passes 280-290
if JDSU whizzes past 300, then Apr300 will truly kick ass

just a difference in risk taking
/ Jim