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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Judy who wrote (12512)	1/10/1999 3:56:00 PM
From: james ball	Read Replies (1) \| Respond to of 34811

Judy one thing you might think about with at the money calls is they tend to have a delta of around .50. You should buy two calls for each 100 shares you would normally buy of the underlying stock. This will give you a 1 delta starting out of the box with your calls. As the stock rises the delta will expand and if you are right on the underlying the delta could in short order get to .75 or 1.5 delta for each 100 shares you would have bought. Therefore you would have 50% at that point more working for you than 1. This of course would rise as the stock continued to rise and eventually you would approach 1 delta and have twice as much working as you would have had in the underlying stock. Tom