Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Working All Day, But Trading Behind the Bosses Back Thread -- Ignore unavailable to you. Want to Upgrade?

To: Steve Smith who wrote (127)	1/25/1999 10:26:00 PM
From: Mark[ox5]	Read Replies (1) \| Respond to of 779

<<<<<Nice on YHOO. I hate buying calls with big spreads. The internet options are notorious for big spreads. Steve, the premium on these internet options are high too.. what I do is place a limit order between the bid/ask, it ALWAYS gets filled at some point within a few hours. These stocks move up and down 5 points in 2-3 minutes and the options move in turn. The options I dont really "daytrade", they are position plays and a few bucks here and there don't matter if the position works out. Funny story, I bought the YHOO Feb 260 CALLs back in 1st week of January..YHOO itself was $240 at the time. I said to myself, well YHOO reports earnings soon so I can see YHOO hitting $300 and announcing a split. So I bought the Feb 260s at $29/contract. Then you know what happened that week, internet stocks went bonkers, Yhoo from $240 to $440 in 1 week, the option from $29 to $175!! in a week! (I didnt sell at $440, but right below $400 but still hell of a week return) So in 3 weeks period YHOO goes from $240 to $440 back to $250.. .and now Im just playing the same game again. (now if I were really smart I would of bought PUTs when YHOO was over $400, but I just started options trading about 2 months ago...) Yes of course the spread was wide when I bought the CALLS Thursday, but it was $31/$35, I got some at the ask and some when YHOO fell down to like $253 briefly (the $32 contracts)... really it doesnt matter if you buy them at $31, $33, or $35, as long as you feel some confidence YHOO would bounce off its 50 day average... because it I can sell them for $100 I wont care if I buy them at $31, $33, or $35 (but yes I do agree the spreads on them are sometimes outrageous) Honestly try it :) next time YHOO hits its 50 day... lol (once every few months) Mark