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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: put2rich who wrote (42834)	1/9/1999 4:20:00 PM
From: Tommaso	Respond to of 132070

Well, of course that is what people who gamble with options hope to do. There are many people on this thread who have a lot more experience than I do along these lines. I am trying to minimize transactions costs myself by buying more expensive options with the longest possible maturity. An option trading at $2 might have a bid-asked spread of a half, or 25% of the valur of the option. The spread can also be quite wide on more expensive options but is more typically 4% instead of 25%. I expect that most people who trade in and out of options lose a much higher percentage of their capital than those who try to trade in and out of stocks. For me, option buying is (I hope) a once-in-a-lifetime gamble on seeing if I can make some money off of a once-in-a-century financial mania. There has never been anything in the American stock market equal to these Internet stocks.