Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Scott Brooks who wrote (11107)	11/15/1997 11:32:00 AM
From: Tito L. Nisperos Jr.	Respond to of 70976

Scott, As much as possible, I don't like to be holding an Option that has only 45 days left in it; the time value starts to depreciate fast at that time. In times of uncertainty as of now, it pays to be safe with the APR and with the LEAP. When I think the APR needs more time then I switch them to the Jul when they are available. The further the expiration, the less risk I have of holding an almost empty bag later. As for the exercise prices, I buy On the Money for trading short-term. In LEAPs I can trade short-term also while looking for the long-term. I buy different exercise prices but more of those that are slightly Out The Money. Furthermore, it pays for me to have cash to average down the cost of investing... For new Option players, I suggest playing with LEAPs studying and comparing different exercise prices---how they react to the movements of the underlying security as they depreciate in time value as days go by. In this chart (100 months), I find that AMAT drifts downward from Aug to Nov and at times to Jan. I don't know why but it pays to pay attention to it... techstocks.com