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To: Voltaire who wrote (27354)	8/1/2000 1:36:10 PM
From: Venkie	Respond to of 35685

I am a firm believer ...I went to the safe ground until the storm has passed..I hate standing out in a storm..i am a bull but this is crazy..historic valuations..slowing economy..rising %% rates..I finally took the hint....usually I do the duh

To: Voltaire who wrote (27354)	8/1/2000 2:38:40 PM
From: jc2020	Read Replies (2) \| Respond to of 35685

Voltaire, Need some lessons in options. Question about Q ITM versus OTM Jan 01 calls? Splain the difference between paying 26 3/4 for Jan 01 40 call with the current stock at 63 1/2. 26 3/4 + 40 = 66 3/4 minus 63 1/2 =3 1/4 difference divided by 63 1/2 = 5.1% (rise needed to break even) Versus paying 4 5/8 for Jan 01 100 call 100 + 4 5/8 = 104 5/8 minus 63 1/2 = 41 1/8 difference divided by 100 = 41.12 % (rise to break even) What makes Jan 01 100 more attractive? Does the premium go up quicker as the stock goes up? I know you can buy a helluva lot more calls at $4.63 a share versus $ 26.75 a share, but the difference in percentage the stock has to run to reach your strike is huge on the 100's compared to the 40's and there's not much downside protection. Granted buying 20 Jan 01 100calls would cost you $9,260 versus $53,500 to buy the 40's. You're risking less money, but it still seems to my feeble mind that if the stock goes to 100 you'll make more on the 40's. You should since you risked more on the 40's, but percentage wise appreciation would be about the same? Now if the stock shoots to 125 that's a whole nother ball game. If you had the cash and risked equal dollar amounts on each you could exercise and make alot more with the 100's cause you bought more calls. Know I'm just learnin' this stuff so please humor me. What am I missin??? From the front, jc2020@justholdinsomecashandtryintomakesomemo.