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

To: freeus who wrote (4433)	9/29/2000 11:28:06 AM
From: Jill	Respond to of 65232

It helps, for sure. I've been following the ups and downs of the extr March 80s 100s and 120s. Pick a few stocks and just watch the options and you'll get a sense of their trading range. They definitely will inflate and deflate depending on other factors.

To: freeus who wrote (4433)	9/29/2000 11:39:29 AM
From: edamo	Respond to of 65232

lynn....do more then track the price of the option, look for increase/decrease of volatility....this is what you are paying for.......if you are buying a long call position, you want minimum volatility premium....that is why dim are more attractive then otm or dotm....just add the prem to the strike, minus the current common price....the closer you are to the current stock price, the lower the volatility and in turn the risk factor....optimum call buy is to set a position as close to parity with the common...less leverage, but more a stock replacement...