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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: gambler who wrote (34612)	10/27/1998 3:30:00 AM
From: miklosh	Respond to of 132070

Gambler "Sure-Thing Options Trading" Talk about coincidence. I took this book out of the local library 6 hours before your post! I also checked out Getting started in options by Michael Thomsett, and I bought options for the stock investor by James Bittman a couple of days ago. Based on customer reviews at amazon.com these are some of the better ones out there.Bittman's book is heavy on profit and loss diagrams, and theory. Thomsett's book and Angell's book (sure thing options trading)do a better job of walking you through hypothetical trades. I'm specifically looking for a book that details index option trading. If you know of any please let me know. miklosh

To: gambler who wrote (34612)	10/27/1998 8:57:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Gambler, I don't follow the numbers very well at expiration. I can understand the Jan 2000 call, but why would $80 stirke price puts be worth $6 if the stock is at $78 at expiration? Anyone who is buying for more than $2 needs a lobotomy. <G> Basically, I don't like the trade. You have to be right on a very volatile, popular stock, which I also happen to think is very bloated in price, to make a little on the long puts. But you are risking infinity on the short calls. That is something I absolutely can't hack in my own portfolios. Basically, on a naked call, the broker is required to hold the option premium plus 25% of the value of the stock, less the out of the money amount and less the premium, marked to market daily. That is much less than $25,000. In reality, you are only putting up margin for the short call. The broker's margin clerk is probably having a coronary thinking of how Intel could double before you could cover, so he is asking quite a bit. But the truth is, it is a high risk trade and I don't think you will get a much better deal unless you have a very large account. Those margin deals for LTC are not going to be offered to you. MB