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Technology Stocks : SDL, Inc. [Nasdaq: SDLI] -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Miller who wrote (1398)	5/22/2000 4:53:00 PM
From: wlheatmoon	Read Replies (3) \| Respond to of 3951

Jerry, with all due respect, I believe Mucho Maas has much to teach those who want to learn about options. you bought and sold the calls as a trade. you picked up calls at support and sold in the rally, it could easily have been done with the stocks. however, when one buys the calls as a long term buy/hold strategy...there are different calculations involved. minutia or not, it is appreciated. regards, mike

To: Jerry Miller who wrote (1398)	5/23/2000
From: Wyätt Gwyön	Read Replies (3) \| Respond to of 3951

OT you make this far more complicated than it needs to be. i bought 10 September 160s for SDLI this morning @49 ea. sold at the close for 59 1/2 ea. Congrats on your day trade. But with all due respect, if the subtext of your presenting this interesting piece of information is to show how much you know about options (and therefore why your judgment regarding my posts is "right"), I am afraid there is at least one unconvinced person on this swiftly tilting planet: Buying the Sept 160s for a simple day trade is like using a meat cleaver to scalp a potato. What happens is you end up with a lot smaller amount of potato than if you use a suitable tool. For the same 49K, one could've earned a profit of about 65K (6 times the profit you claim), or conversely made the same 10.5K with an initial investment of only 8K, by buying and selling the June 250 calls, which more than doubled from today's low bid/ask. I suppose that is just one of those pieces of minutia... Ignorance is bliss, eh? People can make options as simple or complex as they like. The posts I made on the subject here were aimed at someone who might be considering options as a substitute for common as an investment. "Investment" here being arbitrarily defined as a position one keeps for more than a day. The purpose of discussing specific numbers (numbers of calls/shares purchasable for a given amount of cash, etc.) was to present a case study as opposed to an abstract theory with a bunch of Greek mumbo jumbo. Options ain't rocket science, but if you're not used to them, it is sometimes easier to hear about them in the form of a "word problem" as opposed to abstraction. If you don't find that interesting, fine. But if one or two people find it of interest, I am happy.