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 : No-nonsense stock option picks ! -- Ignore unavailable to you. Want to Upgrade?

To: Mike Perras who wrote (67)	12/15/1998 12:15:00 AM
From: Benchman	Respond to of 135

I guess the reason to buy stock, is the time factor. Let's say you bought some XYZ company options that expire 2 months from when you bought them, and let's say they have announced a split. Then the Government files a lawsuit against them. Everyone gets spooked and sells. The stock goes from 130 to 100, your options are for 130. The lawsuit turns out to be bogus, but, the stock does not recover completely in 2 months. Let's say it goes to 125. Your options are probably worthless now. However, the shareholder is okay, and will probably make money. You can substitute "market crash" or "accounting irregularities" in for government lawsuit. Also, some shareholders, just like to leave the money in a stock, and not have to worry about churning it. The key is anything can happen. I think your strategy is a good one, but, you never know. Yes, I do short stocks too :-) I wouldn't say nerves of steel though, I think I'm just a gambler at heart...... Rob.

To: Mike Perras who wrote (67)	12/15/1998 2:06:00 AM
From: Daflye	Read Replies (1) \| Respond to of 135

mike, cboe.pcquote.com optionsource.com The first is the CBOE home page, you can get a complete 15 min delayed option chain for a security or an index. Also good to surf through the tutorials. Optionsource is also good to check out basic strategy and some of the technical aspects of options trading. Please paper trade a little before you play for real. Time decay and spread can be hard to beat if your wrong on the direction and timing of the underlying stock. Also option premium increases with volatility, and options are often priced to lose you money. Do some reading and observing before you jump in. Good luck, Darin