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 : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Rainmaker who wrote (25318)	8/4/1998 4:21:00 AM
From: Spaw	Read Replies (2) \| Respond to of 36349

Rain, >>you said: The level of risk an investor takes on relates to their aggressiveness and "pain" threshold. << Agree with your opinion... but the degree of risk acceptable is also impacted by the amount of capital a trader can commit to a position. The better investment by far when trading options is the high delta version. This has nothing to do with safety. It has to do with appreciation potential. The deeper in the money and time a contract is, the more of a move you will get. Very deep contracts will move almost 1 to 1 with the stock. All I'm trying to say is: If you truly believe PairGain is moving to 20 in 3 to 6 months, the 12.50s will let you catch the move in its entirety. When DSC Communications was bought by Alcatel, I owned the 17.50 calls. The stock moved from 18 to 30 in about 5 minutes. I enjoyed a 1500% gain in that move. If I had owned the 30 dollar calls, I would have been deprived of the profit. I see PairGain as a buyout candidate and I want the whole cookie, not just the last little piece. Investing is about speculating, yes. It is also about committing capital in a way that will give you the maximum profit. Best of luck to you, --spaw-- BTW: I don't own any PairGain options just yet. Waiting for a base and reversal in this market. Might take a partial position soon.