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Technology Stocks : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: Rob S. who wrote (4970)	11/13/1997 5:44:00 PM
From: Dale J.	Read Replies (2) \| Respond to of 9124

Rob, I agree. I sometimes buy options myself, but I wouldn't recommend them to anyone. They can be very risky. Even when you got the right stock, you still have to get the time frame right. Even if you get the time frame right you still have to dodge industry, market and international worries that can drag you down. Covered calls have there place. I use them once in awhile. Margin can also be risky, but at least with margin time is on your side when things go wrong. Assuming of course they don't go permanently wrong. Dale

To: Rob S. who wrote (4970)	11/13/1997 6:22:00 PM
From: robert elmasian	Respond to of 9124

Rob, I would like to add another point to the problems you and Dale made about trading options. In many ways, trading option is like trading penny stocks. They typically have have limited liquidity and big spreads. For example, today the November QNTM call at $30 traded less than 400 contracts. That is the equivalent of just 40,000 shares, very tiny compared to the 5.6 million regular shares exchanged today. At the close, the bid was 3/4 and the ask 1. Market makers that buy a contract at $75 sell it back at $100. That is better than most bookies do. If they can maintain a buy/sell order balance, being a market maker is like owning a casino. Would I ever buy options knowing what a rip they are? No way. Oops, looks like I have 10 QNTM calls in my account. Oh well, why take my own advice?? Bob