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

To: Knighty Tin who wrote (46805)	2/12/1999 7:57:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 132070

What I also realized, though, is that you can get out of the high-priced LEAPS before the premium starts to suffer significant decay--that you have a couple of months leeway before anything significant other than variation based on the underlying stock begins to erode the value of the option. of course there are always exceptions and misjudgments (as I seem to have made about my AOL LEAP put). But so far I have been able to get out of two LEAPS that were originally priced at around 50 with about a $2,000 profit on each, and have put that money into much lower-priced puts. Also, splits in AMZN and YHOO seem to have beneficially provided me with lower-priced puts that have risen more than the split really warranted. Just as puts priced at around $2 seem best for a horizon of up to a few months,two-year LEAPS priced at around $8 seem to offer the best prospects of gain. But our ways of approaching this are totally different. For me, this is a one-time chance to (possibly) increase a speculative account by 50% in a very short time, using this one-in-a-lifetime or even once in-two-lifetimes opportunity of an unheard-of stock bubble. For you, it seems to be an ongoing effort at profiting from this zero-sum area of the markets by acting more intelligently than others, on the whole. Maybe some time I will set aside a certain amount of money for continuing speculation in options. It would be more convenient and better for one's health than sitting up until 5 in the morning in a smoky room playing poker.