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Pastimes : Play It On Paper- Clappy's Newbie Option Thread -- Ignore unavailable to you. Want to Upgrade?

To: techguerrilla who wrote (144)	8/13/2000 10:06:40 AM
From: Clappy	Respond to of 176

Hi Techdude! It's good to see you. I'm trying to figure this options stuff out. I'm beginning to realize how the time decay effects these strike prices. The book explained it, but it wasn't until I started doing this stuff on paper that I realize the real effects. I see now that as I get closer to expiration, I should try to buy in the money. Some of the tricks I tried earlier do not have the same effect as they do now with expiration around the corner. Those little fractions don't move quite as much anymore upon similar sized fluctuations in stock price. This is an important fact that I did not take into account. Further out in the month a 5-10 point jump or fall, caused much greater movement in the OTM strikes. It appears, that is no longer the case. I have a lot of learning to do. At least, I'm getting better at separating my emotions from my trading... I think you will get a chance to buy a lot of the stocks you want at a discount. I don't think that we are done testing the bottom. We have a ways to go. I think the Naz will dip closer to the 3200 range. Possibly even further. However, I will probably buy in spurts on the way down. I plan on being fully invested without using margin as we head into fall. Feel free to post your paper trades or real trades here. -Clappy