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To: Cisco who wrote (134463)	7/16/2006 3:38:38 PM
From: wave3rules	Read Replies (2) \| Respond to of 209892

Personally I have played close in options lately, like 1-4 weeks. But there is merit to going long Jan puts and then selling close in puts that are close in and in the money to play bounces. Thats of course for a bear, a bull does the opposite, buy long out calls and write calls when he figures a dip is at hand. I like writting naked puts or calls but the margin is so high, using a long put or call to cover reduces the margin a great deal.

To: Cisco who wrote (134463)	7/16/2006 4:25:12 PM
From: venividivici	Read Replies (1) \| Respond to of 209892

I was thinking more in terms of how many contracts can be bought for the same amount of capital and how much leverage you'd get from your purchase, but, yes, if you limit the number of contracts purchased to the same amount in both cases, the longer-dated call works best, as your analysis shows. Incidentally, you could buy close to 50 contracts of the Aug 38 call for the same amount it would cost you for 10 Jan 38 calls and at a closing price of 39, you'd make ~$3200.