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 : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: browser who wrote (4290)	12/14/1998 9:07:00 PM
From: LastShadow	Read Replies (2) \| Respond to of 43080

3/8ths?

To: browser who wrote (4290)	12/14/1998 10:05:00 PM
From: Magnatizer	Read Replies (2) \| Respond to of 43080

browser I try to keep it simple with my option plays. Not sophisticated enough to really dial in the absolute best play. I go by a general rule of thumb, which is.. Depending on the play I will choose either to go a short term route or long term route. In AKLM i choose the longer term route which, in this case, I wanted to get a couple of earnings announcements in before expiration. So, I decided to go with Aprils. Next decision was which strike. If I buy 4 or more months out I always choose the closest out of the money option. If I had decided that AKLM looked to run hard and fast I would have likely choosen to go with a shorter term option. For the sake of example lets say I thought AKLM had a good shot at 13 by expiration this month. I would have picked the nearest in the money call, probably Jan 7.50s. This would give me room to be wrong by a few weeks and, having the options in the money, I take advantage of price moves basically tic for tic. ht david

To: browser who wrote (4290)	12/14/1998 10:42:00 PM
From: tom pope	Read Replies (1) \| Respond to of 43080

>>i'm into option buying and have a stumbling block in how to figure out which call to buy can u be so kind and share with me the reason why april and not july? AKLM=9 3/8 april 10=2 july 10=2 3/8< I'm afraid the answer to your question is very simple - you wouldn't get filled at those prices, which are last prints, and not representative of what the market would have been had there been any trades at or near the close. The closing ASK for those two strikes was April 10's : 1 7/8 July 10's : 2 5/8.