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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: VICTORIA GATE, MD who wrote (71472)	1/18/1999 11:14:00 AM
From: nihil	Respond to of 186894

Have to sell options Almost every one over-leverages themselves on options, at least when they start trading. The best rule, I think, is to think that you are trading stock and keep plenty cash for trading purposes. On a gap down, you can buy back your spread shorts (if lower in price) and roll them up later on recovery close to the bid and increase your position expected profit. On a gap up you can take a profit on the longs and roll your long position up. Spreads give you stability and always a trading opportunity on a gap, if you have the cash to trade and if you only limit trade you can gradually improve your potential profit over time. You don't have to trade market because you need the cash. But spreads are so cheap and sure (on an uptrending stock stock like Intel -- I demand a triple for a year LEAP) that you rarely lose any net time value, and go into expirations with a huge profit, fear of legging out (how about last week on Intel) and if you have the cash and leave your spread alone you end up with longs and equsl shorts against the box, big credits and you can exercise your naked longs for cash. This does wonders for your tax basis (especially on last minute purchases). You end up with a major trading position that almost guarantees a much bigger profit -- if you have the cash to trade it. I'm looking forward to huge swings in Intel and hope to profit on every one. I don't look forward to tax time -- I keep track on a spread sheet and keep my parcels separate by date of purchase or short sale. I figure this kind of trading for a committed long on Intel as I am, can improve buy and hold results (with very little additional risk) significantly. I did better in 98 than buy and hold would have done for me. I'm starting well this year (+75% on total Intel position so far -- some lucky last minute call purchases and put sales). It really a quite small, but profitable, position.