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

To: uel_Dave who wrote (4424)	3/8/2000 7:05:00 PM
From: RocketMan	Read Replies (1) \| Respond to of 8096

Glad you made out on those August 85's. That is far enough out to profit from the consolidation and the merger. $7.50 was a steal. I only have August 70 and 85s, sold my June earlier at a nice profit. I doubt if I will keep my August calls much beyond May, assuming the price appreciation that I expect takes place. Unlike some here that like to hold DIM calls to expiration and convert them, I take money off the table before the time premium decays too much and either roll them out to later months, convert them to common, or get into a different stock. I doubt if this is an optimal strategy, in fact, I am sure it isn't, but it seems to work for me so far. This market is too crazy to hold on to options for too long, unless they are leaps on a good ltb&h stock like qcom. I also have leaps on emc and csco, because I figure I can wait out any correction on those companies. But on companies like cree and gmst that are volatile and don't have leaps, the options go down faster than they go up. So don't go crazy on options, especially since there is a lot of talk of a naz correction soon and Uncle Al is getting increasingly irrational. I am up to 55% cash now.