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To: Chuck Williams who wrote (21564)	3/12/1998 11:45:00 AM
From: Andreas	Respond to of 97611

Yes, you're right you can achieve the same end with significantly less capital by buying options closer to the market price - but you do so at greater risk. When risk is considered the in-the-money call clearly has less probability of risk. A five point drop will not wipe out the 10 point in the money call buyer while a five point drop for the at the market price call buyer will. Taking it one step further - buying out-of-money calls is even riskier, since the stock has to actually go up to the strike price before the call buyer is assured profits. Of course, recognize that all of this discussion assumes that one is holding their calls through expiry. Although that is not the goal for option buyers for purposes of determining risk that assumption must be made.