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.

Technology Stocks : Zitel-ZITL What's Happening -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (13676)	1/11/1998 8:13:00 PM
From: Roger A. Babb	Read Replies (1) \| Respond to of 18263

Bill, I disagree with the term quasi. I think y2k is a full blown evangelistic religion complete with preachers and profits and most definitely collection plates.

To: Bill Wexler who wrote (13676)	1/13/1998 1:01:00 PM
From: Pete Mason	Respond to of 18263

>> My position is in "never cover" mode anyway, so it really doesn't matter to me. << Bill, from reading your posts, I've gotten the impression that you don't buy options much if at all; I don't use them much myself, BUT in certain cases they can be very fun: if you are absolutely positive about the general direction of a stock, you can buy fairly long-term options with a high degree of confidence. I'll grant you that shorting ZITL and simply sitting on it is a fool-proof strategy. But it doesn't give you any profit in the week-to-week fluctuations of the stock. (Plus it might get kind of boring...) With options, you can make a pretty decent return from relatively small moves in the stock price. For instance, I've started buying the June 15 Zitl puts (at around 5 1/2). My evil theory is that ZITL will hit 8 within a month or two, at which time I'll sell these for probably 7 1/2 (for a nice return, percentagewise). Then, knowing ZITL, it'll go up a couple of points, at which time I'll buy these options all over again. Since the time premiums on these ZITL options are extremely small, my only risk involves ZITL hanging around in the low to mid teens from now until June. Heck, I might have just talked myself into getting a few more of these! Now if ZITL would do me the favor of getting goosed up to 12 or so, I would definately load up on more! My two cents, (rapidly turning into three or four cents) -- Pete