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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: sdm2 who wrote (54401)	7/13/2000 9:09:19 AM
From: myturn	Read Replies (1) \| Respond to of 150070

I am not any good at explaining options and how they exactly work. In simple terms, you buy a call, you are expecting the price to go up. You buy a put, you are expecting the price to go down. Buying July $40 calls, I am expecting the price to go up. Earnings are due out next week before options expire on July 21. PCLN beats earnings; I see them blowing past $40 Look what Yahoo did the other day. I believe the solid internet companies such as Yahoo and Priceline.com will do well and always meet or beat their estimates. On options I am still learning the intricacies of them. They are much, much riskier, but you put up less capital for a bigger hit. Just like playing the pennies. I have a friend, I follow his lead on these options. He nailed BRCM last Friday. He spent approximately 12k on it and profited nearly 36k in a matter of minutes. It was a given it was going to pop sometime during the day because fund managers were required to have BRCM in their portfolio by the end of June because it had just be moved to the S & P Index. Any fund managers who have a S & P fund are required to hold all of the positions in that particular fund. Me, I didn't play it because I missed it. I looked at it earlier in the day and was hoping it would trickle down some more. The next thing I knew it was up over 100% (the options). Cheers RG