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Strategies & Market Trends : The New Bull Market. -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (806)	6/21/2002 10:20:04 AM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 1750

Chip, realize this is pure conjecture, but if most of the long call players bought the 320 call, then the market could stay around 320 until expiration... no one in that group wins... at this point, you might consider selling the 330 call against it, the max you would make is the $1,000.00 minus your initial purchase... as always, and we discussed this before, taking a long option position, put or call, works against the buyer... another suggestion, short the 320 put and make that money, but that too is risky... If you have any kind of profit now, or even a minimal loss, I'd just close it out and take a long contract position, even a mini, you're asking me, that's what I would do... from now on, and for the rest of your life, never buy an out of the money option... if you must take a long option position, at least be sure it's at the money or in the money to some degree... those out of the money options are extremely high risk trades, i.e., you could be right about market direction and still lose in the trade..... Important Note: Options are intended as a near term insurance policy for a market move going against your underlying position... right now, I'm short the SP's, so if I wanted to protect my short position, I would buy calls, this would protect me from a major rally even though I'm short... but to take a net long call or put is not the way to go about making money in these markets, just my two cents here..... GZ