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

To: HoyaBob who wrote (7102)	5/1/2000 9:41:00 AM
From: RocketMan	Read Replies (2) \| Respond to of 8096

The model I described is why I choose OTM and common rather than DIM. From a negative perspective, and to put it more simply, DIMs are expensive, and a 50% correction of the kind we had wipes you out, especially with near term options. With common you only lose 50% and can hang on for the long term, if you wish. The OTM are cheap enough that I can afford to lose it all in a crash, but make out in a run. I did OK with my CREE OTM this way, a 10 bagger. Not saying I can repeat that, but this is just gambling anyway. I also lost out on the MSFT gamble, but not nearly as much as if I would have had DIM. As I said, I can apprecitate valid arguments for DIM, but safety is not one of them.