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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (16206)	2/17/1999 3:16:00 PM
From: Greg Jung	Read Replies (1) \| Respond to of 74651

Wow was that ever a bad idea! I bought a lot of April 175 call options today 3 3/4. Considering the stock is trading at about 153, I find it to be a bargain. LOGIC: Split adjusted bases the stock is at about 76 while my srike price is 87.5---and therefore my cost is 1 7/8. I realized that even if the stock is at its current price on March 27 adjusted for the split (ie 76), the price on the option should be at least $2 due to increasing volatility we will see in the options market. I recommend you research alternative strategies that can bail you out. -6 is only a little more than 2%, this stock is so non-volatile yet call options so pricey, you can do well selling calls against the stock. If you had any. March-April will suck, maybe not if we get a huge selloff (taking msft down to 120, maybe?) then it could be poised for a moon shot. See feb-April 1997. I spent a lot in the early part of that dip on options and was at wits end during bottom times; still I got lucky with the market melt-up and the June/July options I bought. I suppose msft was split-adjusted 20 or something then but still too expensive for my blood. Good luck. Pardon my intrusion. Greg