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.

Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Margaret Mateer who wrote (57831)	11/19/1998 9:58:00 PM
From: ftth	Read Replies (2) \| Respond to of 58727

Question for anyone: Regarding AMZN: If a person is a medium term (couple months) trader, why buy long stock here? When a stock moves as far and as fast as AMZN, Deep, Deep In the money calls trade barely above intrinsic value. This provides a unique situation because of the magnitude of the move. Jan 75 calls can be had for a fraction of a point above intrinsic value.You can essentially have 2:1 leverage (compared to long stock)for about a point. That's less than the margin interest you'd pay to have a similar situation with the stock alone for 2 months. The delta on the Jan 75's is very close to 1 so it trades point for point with the stock. Note: same situation doesn't exist for put buyers because the stock is recently off its highs. Am I missing something, options gurus? (other than if everyone did this it would probably end up bringing the stock down because the buying of long shares would dry up, which would probably cause the mo-mo's to bail since mo has gone away) dh

To: Margaret Mateer who wrote (57831)	11/19/1998 10:46:00 PM
From: donald sew	Read Replies (2) \| Respond to of 58727

Margaret, Now that makes sense. Thanks I have confirmed with my old collegues in the steamship biz, that they see no improvement in exports for the next 6 months, but project an increase of 10-15% in imports. That sure wont help the trade deficit. Just a tidbit in export rates. The cheapest rate from the west coast to HongKong for wastepaper is now around $500 per 40' container. That doesnt even cover the loading and unloading costs. By the way wastepaper is one of our largest exports in terms of volume of containers. seeya