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

To: Eylon who wrote (81)	5/9/2000 5:25:00 PM
From: Jill	Respond to of 10876

I certainly experienced this firsthand and so did mtnlady I believe, we picked up Sept 100s on NTAP, I did so when the option was btw 2 and 3 1/2...various small batches...it went as high as 10, but I believe I sold at around 8. Can't recall exactly :-). In any case, it was great leverage. NTAP had gone down to 45-50 and then shot up to 77. I'd also purchased Sept 55s during that time but am holding them, they were added to previous Sept 55 position.

To: Eylon who wrote (81)	5/9/2000 5:44:00 PM
From: mtnlady	Respond to of 10876

Thanks Eylon - gee... I was 'smart' and didn't even know it! <g> To a 'simpleton' (i.e. me) it was put this way... 'Your money can go further with OTM cc's and you will still experience much of the same upward move that ITM calls will give you.' Basically a bigger bang for less of a buck. Of course it only works when you think your stock is down and stands an excellent chance of rebounding fairly quickly before the time clock starts eating into your calls value. CREE calls are not 'cheap' and the stock is very hard to catch on a downward movement nowdays. The thing has a tremendous amount of strength.. most likely due to 'dyed in the wool' serious CREE investors that are rock sure where they fav is taking them in the next 6-18 months. Anyway I had made up my mind awhile ago that the best way to play CREE, due to my more limited resources now, is to go after the calls when CREE was 'tanking' and the market looked like it was poised for a rebound of some sort. I don't need much of a rebound to make a profit on CREE but it does take many days of downward market action to get it to come down. You have to be patient.