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Strategies & Market Trends : BEFRIEND THE TREND Short-term Options Trading Thread -- Ignore unavailable to you. Want to Upgrade?

To: Scott Bergquist who wrote (968)	2/18/2002 3:14:07 PM
From: sean sanders	Read Replies (1) \| Respond to of 4058

I never thought about going that deep ITM ie 10-20 points before ... Usually when I bought options I bought near ITM or if I wanted to take a long shot I would go slightly OTM. Most of my OTM options didnt pan out and I knew that; why I considered them long shots but on occasion they did and they were mainly played 'for fun'. If I wanted to play a stock but I really didnt want to invest the full price to play it I would buy a option with ~3 months to exp or sometimes more and play it that way; perhaps going the route you suggested buying deep ITM. Only thing I get worried about is getting ripped off on the bid/ask or having partial fills; but I suppose if I keep those deep ITM option trades to big volume stocks then things shouldnt be as bad. At least deep ITM options would still allow me room to sell and (keep some cash) if the stock took a sudden turn for the worse; near ITM options just dont allow you that luxury. You talk about playing deep ITM close to exp. day also. Not sure if I could do that right now ie busy during the days most of the time.