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


To: RR who wrote (9225)10/22/2000 10:11:31 PM
From: Jim Willie CB  Read Replies (1) | Respond to of 65232
 
typical salvage value of deepoutmoney calls is 10-30%
but with the opportunity of 2x to 4x profit

typical salvage value of inmoney calls is 40-70%
but with the opp of 50% to 2.5x profit

deepoutmoney calls offer the "ILLUSION" of controlling more shares
this is true ONLY after the higher strike price is surpassed
until then, the much lower delta means you control only a portion of those contracted underlying shares

for what it is worth
with DOM calls in last decade, I have lost on 75% of them
with about 20% of them total losses

Rickster, I fully subscribe to the prudence and power of inmoney calls
I may go just a tad higher than you on strike prices though
with EXTR in the last three weeks I got March100 calls
while common shares started at 112, all the way down to 94
what started as inmoney, ended at outofmoney

/ jim



To: RR who wrote (9225)10/23/2000 6:34:06 PM
From: Percival 917  Read Replies (1) | Respond to of 65232
 
Hi Rick,

It was my turn to be out of town. Doing the continuing ed thing. I meant no sarcasm or disrespect to you on the EXTR post. When I said "conspicuously", I was referring to missing your rallying posts of bravado telling us to hold tight and grab more calls at the new bargain. I am out of town myself a lot and have been struggling to keep up with the posts and did not catch where you were out of town also. When I didn't see you posting, I was just wondering if you were reevaluating. I know you do indeed put your money where your mouth is and meant no offense.

BTW on the OTM calls, they wouldn't move as much as the ITM calls if they turned would they?? I am holding the Mar 100 and Mar 120 calls at the moment. Let me know if I am missing something here.

My thanks as always,
Joel