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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?


To: rydad who wrote (1039)9/13/2000 5:55:00 PM
From: Voltaire  Respond to of 65232
 
Good deduction,

I did that yesterday and told others to. Jill etc.

V



To: rydad who wrote (1039)9/13/2000 5:56:15 PM
From: Jill  Read Replies (1) | Respond to of 65232
 
2 reasons:

1) There's no guarantee it'll go that high

2) If you buy 100s, when it pops, i.e. becomes ITM it moves almost in concert with the stock. Thus your leverage increases.

3) If it does go to 150 200 300 or whatever, many more OTM options will become available, and you'll roll out to increase leverage