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

To: RocketMan who wrote (7122)	5/1/2000 9:10:00 PM
From: SecularBull	Respond to of 8096

"I don't believe any one strategy is good or bad for everyone." GREAT POINT that seems to be lost on some (time and time again). Regards, LoF

To: RocketMan who wrote (7122)	5/1/2000 10:33:00 PM
From: Ritch	Read Replies (4) \| Respond to of 8096

RocketMan - You really need to get rid of that huge chip you have on your shoulder. You posted someone's offhand estimate as a fact just because you heard it on a thread. Did you look up the option to make sure the numbers were accurate? Since you didn't, I figured I would. The 52 week high for this option was 42 3/8. The 52 week low was 1 1/16. Not quite the numbers you quoted. The spread of your numbers, $.50 to $50, is 100X. The actual spread is only 40X. Quite a difference, but this is not why I responded to you. The things that I took offense in your posts were as follows: 1. When someone questioned your numbers, you called him a "thread moron", told him you were going to ignore him, and refused to back up your numbers. 2. You compared DIM options to buying on Margin. 3. You compare options to gambling. 4. The way you described DIM options, you made it sound that DIM options were more risky than OTM options. The following is your statement: As I said, I can apprecitate valid arguments for DIM, but safety is not one of them. This statement is very misleading to many newbies. No one says that there is no risk to DIM options, but just that there is a lot less risk to DIM options than to OTM options. Personally, I buy both ITM and OTM options. It really depends on the stock and the market conditions. But I always consider ITM less risky than OTM. However, the rewards can be much greater with OTM just as you have stated. Sorry if I have seemed argumentative with you, but I feel you have misstated some things about options that needed to be corrected. Good luck to you. Ritch