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 : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Geoff who wrote (2471)	4/3/1998 5:28:00 PM
From: Dragonfly	Respond to of 10852

"I know, I know, we've been through this before, but it is not an easy decision, and betting on where LOR will be in Jan 2000 is not so easy. " Interesting. I'm thinking about buying Jan 2000 LEAPS. Readware thinks the stock will be 52 by then. I think G* will be operating, C* will be operating, Orion will be profitable, and a number of other businesses (not taken into account in any current predictions) will probably be gearing up... I'll buy your LEAPS. :) Dragonfly

To: Geoff who wrote (2471)	4/3/1998 6:34:00 PM
From: dougjn	Respond to of 10852

There are two seperate issues, re: the timing of realizing options profits. One is market/stock issue timing. The second is avoiding the worst of time premium errosion. Time premium errosion is nothing like straightline. It errodes much, much faster near to expiration. As in last few months on down, exponentially. Obscuring this somewhat is volatility premium. I.e., the premium in any option increases the greater the recent volatility (esp. if its in the same direction as the option bet.) Nonetheless, generally options ain't for me. Did consider Lor leaps back when, but then the premium built.