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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: FR1 who wrote (4725)	11/11/2001 2:16:55 PM
From: Timetobuy	Read Replies (1) \| Respond to of 99280

Most people lose on short term options. Time premium can really eat away gains. In a non trending market, call sellers will benefit. OTOH, short term options can pay off in spades if a stock really moves quickly with not much time left. I imagine that there are some daytraders who can benefit on intraday moves on expiration day and I must admit that I've played a few short term options around expiration on one of my stocks, but I know that it's speculative and no way a sure win. You are correct about the stock not moving one for one as it approaches the strike, but I've never had a stock move close to the strike. I think you meant that the price doesn't move one for one any more as it approaches the strike though. I try to go as deep as I can and with as much time as I can get. If I were to have bought brcm options when I bought the stock, I'd have bought the 5 strikes when it was 20. Probably for about 16-18 or so, depending on the month. Since I don't use margin, I'm not forced to sell. I generally don't buy leaps because I don't plan on waiting that long to exercise and those generally do have more premium to them. I don't know about the gains in pmcs and amcc. They do act well for their valuations, but they could be relatively flat like they were in the spring for months. Longer term, they are coming back, that I know for sure. I see you have one of my stocks that I just bought recently. JPM. Guess Argentina didn't sink it! We'll have to agree to disagree on what caused the lowered demand on the IC chips. I tend to agree with David Rickey. He said he sold what he should have sold this year, last year. The fed's loosening of monetary policy pre y2k probably created overdemand, overcapacity and oversupply and we're making up for that now. Won't last. The buildout will continue. Looks like Idph is getting a little weak in the knees. Maybe that fellow on yahoo can cover his short where he inititated the position. If it weakens significantly, I'll probably buy a few more shares.