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 : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: David Semoreson who wrote (10152)	3/26/1998 8:47:00 AM
From: Kurt Starnes	Respond to of 213176

By 'longer' options, do you mean a strike more in the money or longer term? I tried to make a similar play to yours in Jan and got stuck w/ JAN 20s as well. But APR and JUL 20s and 22.5s are looking good! GO AAPL! Kurt

To: David Semoreson who wrote (10152)	3/26/1998 8:55:00 AM
From: Phillip C. Lee	Respond to of 213176

David, I agree with you that sales have to increase, but don't know if you notice that Apple's units sales have increased from 625k in Q4, '97 to 635k in Q1 '98. I am not sure if this trend will be sustainable into the current Q2, but am not surprised at the units sales uptrend. I think you are right to play with long term bets on options, which provides you more time to react the market's swings in the future. Phil

To: David Semoreson who wrote (10152)	3/26/1998 9:27:00 AM
From: John G. Mueller	Read Replies (2) \| Respond to of 213176

"But I got killed buying Jan 20 options when the stock closed at only 19.75" David, Amazing how these hot option stocks tend to move towards a nice round whole number at expiration. That's been going on so long I quit trying to figure out why. But leverage is not the most important thing in options trading. Survival is. Sometime do the math on profitable option trades and most times you'll find you would have made almost as much buying longer term "inthemoney" options. Do the math on losing trades is even easier (smile). 2 X something is worth more than 10 x nothing. But there are other ways to use options. If you are long 200 shares apple and you think its going to 40 by July, you could leverage your position by selling 2 July 25 calls (5) buying 5 July 30 (2). You could put on a "butterfly" spread by selling up to 5 July 35 calls at some point if and when you wanted to hedge your position. Lots of cool, crazy and dumb things to do in options and I have done them all. It also quite easy not to make any money even in a roaring bull market by being too bullish. LOL John