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To: sean sanders who wrote (11218)	7/7/1998 10:49:00 AM
From: Electric	Read Replies (2) \| Respond to of 42787

Sean, Personally I like to trade as far in the money options that I can, affordably. I used to buy out of the money calls so I could afford more, looking for the home-run. Doing this, I lost alot of money. When you buy out of the momey calls you are subject to immediate loss of your principle. Example if you bought Dell July 100 calls, they might cost you say 50 bucks for each, and you might think that you can make alot of money. You can, and you can also lose your shirt very fast. buying in the money gives you a cushion in case the stock drops a little, plus the movement of the premium is greater when the stock is over the strike price of the option. The only time I have bought out of the money is when I bought a leap, a long term option. I expected to wait to see the returns on that senario. Did that help?

To: sean sanders who wrote (11218)	7/7/1998 9:27:00 PM
From: Sonki	Respond to of 42787

Sean, I see u got your answers. i agree w. u, options are less risky then stock since all u can loose is the premium. Must be kept to moderation to the % of your portfolio. Unless u want to learn the hard way the value of TIME. I do it just for a fling not for investment. in the money. less risk , less roi out of mony, more rish, more roi. when u buy calls calculate 100% roi, if u don't think u gona get 100% roi don't buy a call. then take profit at 25-50% roi. i m learning everyday... fear, grid etc. keeps me on edge of the chair. i would have never bot nscp stock but was willing to gamble w. 2.xx and bingo jack pot the next day. if i lost 2.xx, i would still have bread on the table. ( may not have the table<G> left).