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

To: Oeconomicus who wrote (17080)	1/18/1999 12:30:00 PM
From: Don Westermeyer	Read Replies (1) \| Respond to of 18691

Bob, You are correct about the implied volatility. It is not unknown for a stock to briefly decline in price while the call option premium actually goes up. IMO there is no 'free' money in using options, unless you have inside information or something! I don't usually mess with them but will sometimes sell covered calls on stocks I own and feel are fully valued. When I do use them, I think they have cost me more money in opportunity than they have made me (it is really pretty close to a wash though). With a well diversified portfolio I see little use for options. At least the commissions aren't so outrageous for options any more.