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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Nancy who wrote (30393)	12/5/1997 6:53:00 AM
From: donald sew	Respond to of 58727

Nancy, Disheartenly, I did not sell on the spike. The next support line is at 116, and I have already decided that if it pierces 115, I will get out and shake off my mistake, but without a loss. At this point I do feel that the 116 support line will hold on a closing basis, as long as the overall market does not pull-back substantially. As much as you are surprised when I stated it was reasonbly priced, I was equally surprised with your question. ggggggg When I was watching the time value on the OSX for over a week the Jan calls which were about $10 in the money had only about 3 bucks in time value. Of course when the option was running up the time value increased to around $4.00. And that was when there was about 7 weeks left. Many of the indexes would have had close to $15-20+ time-value for the next month calls. I always play in the moneys and as deep in the money as possible/reasonably priced. I have learned not to go for the home run and by playing in the moneys the risk is reduced based on the accuracy of my system. Granted the more money put into an option the greater the possible loss, but further in the money also reduces the risk in most cases since it will minimize the loss if one is disciplined to get out.