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

To: ftth who wrote (57834)	11/19/1998 10:55:00 PM
From: dealmakr	Respond to of 58727

dave, It happens a lot that you can have a series of deep in the money options. It may not occur though for all strike prices and expiration months. A lot of times you can see some volatility spikes that open up new series of strikes for trading. It happens more with stocks that are more volatile or that have high beta's. If you get those deep in the money options, your premium of time is very small if the exp. month is close, you have to watch that you don't get too much slippage either on getting in or out of option trades. Your leverage would be about 2x on an option trading mostly on intrinsic value and you wouldn't get a margin call either as you have to put up the dough first for option purchase. A good way would be to look at all the open option series for the underlying before initiating a trade, sometimes there are some hidden values. Good Trading dave