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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (12422)	8/4/1998 11:39:00 AM
From: Jenna	Respond to of 120523

Scalping? A Perspective: Okay so I bought 10 calls of AMZN August 125 this morning at 3 3/4 and I just sold them at 4. commission cost of about 66 dollars ... net profit was $184.00 (approx).. was it worth it? I think it was. Took me 1 hour to make the play at $184 a hour I think that okay. Of course had I been a 'diehard' option player I could have bought 40 calls at the same price the initial investment would have been close to 15k and the profit would be around $700 in a hour. I think that is where option players sink. By wanting to get the big bucks really quickly, the 'once in a lifetime' plays. I knew I would never lose the entire $3,750 and was ready to bail if I had to. But what if I had $15k invested? I would probably get into a panic, lose perspective and pull the trigger or not pull the trigger when called for. Conclusion: Options are fine for a short period of time. If you want in on the action of an earnings play of a company that reports in a day or two but can't spend 100k for 1,000 shares then by all means pick up a 'lottery ticket' for 2k or so. Unlike the lottery your chances are probably favorable 3 to 1. I am assuming you are picking a stock that is trending upward with higher than average volume. It's best if the 'anticipation' is there like TMPW yesterday and AOL and CSCO yesterday as well. But like the lottery the ticket has no intrinsic value. It's not an asset it's a gamble. DELL. I've been asked "What are deep-in the money options".. Say if DELL is now trading at say 110 I would get the 100 options. They cost more but they don't decay and if you want a 1-2 day hold there are the best bet for me.