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Technology Stocks : NCR Corporation: An AT&T Spinoff -- Ignore unavailable to you. Want to Upgrade?

To: Tim Cruise who wrote (246)	6/24/1998 6:04:00 PM
From: judge	Read Replies (1) \| Respond to of 379

Around 90% of options are never exercised.. Therefore, in my opinion, buy options that are in the money and the call date is at least 6months(leap).. Here is JAN 99 call 30.. for NCR NCR Jan 30 CALL - N C R CORP (NCR) BID ASK LAST 5 1/8 5 5/8 7 1/8 NCR is currently at 32 3/4... Example of buying 5,000 dollars of NCR stock vs JAN 99 30 call and stock hits 40 Buying stock $5,000/32.75 = 153 shares 153shares x $40 = 6,120 net profit 1,120 Buying options Options 5,000/ 5.625 = 889 shares.( approxiamtely 9 contracts) Option allows you to buy at 30 sell at 40.. 10 profit per share x 889 = 8,890 net profit 8,890 - 5,000= 3,890. Example of buying 5,000 dollars of NCR stock vs JAN 99 30 call and stock hits 50 Buying stock 153 x 50 = 7,650 net profit $2,650 Buying options Options buy at 30 sell at 50 $20 per share x 888= 17,760 net profit 17760- 5000= 12,760.. OF course the only downside is if NCR isn't at 30 by JAN 99 you lose all your money invested.. If NCR is close to 35 dollars by JAN 99 you could sell your option and lose minimal.. Options are risky but it is a good way to leverage your money... j