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

To: mishedlo who wrote (4770)	11/11/2001 11:58:01 PM
From: Timetobuy	Respond to of 99280

But deep itm calls have little premium. That's what I do when I want to buy the stock and lock in the price now but don't care if I don't have the actual shares until a later point in time. When I use options as trading vehicles only, then I don't buy deep itm calls. At the time I bought brcm, I had no idea if it would see 10 before it saw 30. So, I passed on options all together. If it trades down 10 points, buying atm calls to exercise doesn't do me much good. I may as well buy the shares right now because down the road the strike plus premium isn't probably going to be that much under the stock price. (I'm of the belief that it doesn't go over the spring highs, but I could be wrong). Buying deep itm calls with time is pretty much a commitment to buying the shares later (not a real commitment, but it's the only reason to spend that much on an option). It's a form of leverage without use of margin.