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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?


To: Mama Bear who wrote (16688)1/7/1999 5:24:00 PM
From: Don Westermeyer  Read Replies (1) | Respond to of 18691
 
Barb,

That 10/90 option strategy is right out of most option books.

Too many people think options are free money. The book I have has a chapter dedicated to the subject. There is no evidence that buying call options is any more profitable than just owning the stock. Using that strategy is exactly equal to owning the stock. In fact since option trades are typically more expensive it is probably a loosing game.

OTOH - Option leverage pays off if one makes the right calls in a stock's direction.