To: RR who wrote (24447 ) 12/12/2000 4:16:29 PM From: im a survivor Read Replies (1) | Respond to of 65232 I realize ITM's are safer, but then again, the OTM's are far, far cheaper, and if you really truly believe she ( JDSU ) will make a nice pop, it seems the otms are the way to go. Certainly they will give a much larger % gain if she Pops, whereas, the itm's give a little bit of a safety net. One think I like....and certainly my experience is nowhere near your's......I have seen alot of ITM calls lose 75% of ther value very quickly, and it's tough to use stops. You go to bed with jdsu at $100 and wake up to see her at $75, your not getting out of your call with a small loss. The volatility makes it very tough to use actual stops and limit a loss to only 10 - 20%. The OTM's are dirt cheap....playing the casino. Can hit big, or can lose big, depending on how much you have invested. I would not take the same $25k and buy ITM's and OTM's...I would throw less at the otm's since they are more of a gamble, but I would consider buying $5k of otm's versus $25k of itm's......The most you can lose is $5k, versus $25k, and you have a good chance of huge % returns....and in a down market, those itm's may not be any safer then the otm's......I have done both. Somehow, I seem to always do better with otms and patience. The itm's are pricey and I always seem to lose my ass in them. I have pretty much come to the conclusion that in most cases, your better of buying the stock instead of expensive ITM's, unless the premium and situaion is very attractive ( for instance, I love the itm 2003 $40 aol's for $18 - $20 )...but thats just my opinion...and we know what thats worth <ggg> keith...still holding my jdsu and my march calls.....bought more sndk today also on the pullback