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


To: garnett50 who wrote (3399)9/24/2000 9:32:31 AM
From: Jill  Read Replies (2) | Respond to of 65232
 
Hi garnett, I believe the origin of the name "Jill" comes from milkmaid or something like that.

I think the volatilty is the main thing to watch, and you can see the premiums inflate. I sometimes get a bit sloppy myself so I noticed the same w/ rmbs. The ideal best time to buy calls of course is when the stock has been basing for a while forming a good foundation from which to make a run. But of course who can predict that (I mean, Dell's been "basing" for a few years now!), and the downside is keeping your money tied up in someting while waiting for it to run. However if you buy on a brief mo-mo run, as rmbs had when nec signed, and then it trades back down in a day or two, you'll find your calls need extra oomph to catch up., because their premiums will deflate once again.

Splits can do this too. They increase liquidity, by increasing float, and you can find your calls get whacked too.