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To: Sig who wrote (34119)3/12/1998 4:01:00 PM
From: William C. Spaulding  Respond to of 176387
 
I wouldn't buy May options (or later) until mid-April. The time-premium decay will make these options much cheaper. It's highly unlikely that the computer stocks will appreciate much before then (aside from the inevitable fluctuations in market price.) If you look at past years, the decline toward mid-April is a well-established trend (at least recently). And with all the earnings warnings that are being issued, I'm sure investors are going wait to see what actual earnings are, and when they wait, they don't buy, and when they don't buy, selling predominates, and when selling predominates, stock prices decline!

The key to making BIG money in SHORT-TERM options is NOT TO INSIST ON BEING IN THE MARKET ALL THE TIME. I'm doing very well, and I'm in the market only a few times a year, and only a couple of weeks (at most) in each of those times. If you try to be in the market all the time, you're gonna get burned. I guarantee it! The only way to make BIG money in short-term options is buy cheap right before there is a big increase (calls) or decrease (puts) in stock price. Otherwise, the time premium decay will either reduce your profits or turn into losses.



To: Sig who wrote (34119)3/12/1998 4:03:00 PM
From: Chuzzlewit  Read Replies (2) | Respond to of 176387
 
Thread, Compaq to unveil new small business strategy:

dailynews.yahoo.com



To: Sig who wrote (34119)3/13/1998 3:20:00 AM
From: Celso  Respond to of 176387
 
Sig,
I like your thinking... and I appreciate the tips. I'll be doing some bargain hunting tomorrow. I'll also be checking out the Leaps. I'll let you know how I do. And yes, I do realize the volatility of options as I've been burned with Compaq April 70 (pre-split) I purchased after the October drop at 7 3/4. These are currently almost worth nothing. On the other hand, I did myself a favor with Dell May 100 at 9 7/8 (pre-split). Good luck.

-Celso