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.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Wildstar who wrote (28949)	3/8/1999 10:44:00 AM
From: Duker	Respond to of 70976

Just like they draw it up in the text books! --Duker

To: Wildstar who wrote (28949)	3/8/1999 10:51:00 AM
From: Tito L. Nisperos Jr.	Read Replies (1) \| Respond to of 70976

Wilstar, ... but my Mar 45 did well for me!... The lesson here is that it's better to buy In The Money with little or no Time Value to depreciate than buy Out The Money when the Options (in this case Mar) get closer to expiration. The In The Money Option closely mimics the price of the stock so if the stock gains 9 dollars, the Option gains something like 7 to 8 dollars...

To: Wildstar who wrote (28949)	3/8/1999 11:24:00 AM
From: MrGreenJeans	Respond to of 70976

March 65 Calls Well, I'm outta my March 65 calls for zero gain even though the stock price is $9 higher. How's that for eroding time premium This indicates the March 65 calls you bought were very much overvalued. Generally speaking, if you buy at the money calls at fair value and the equity price rises 10% you may at times see profits of up to 100%. Properly price out options before you buy them. This should be the lesson here.

To: Wildstar who wrote (28949)	3/8/1999 11:17:00 PM
From: Robert O	Respond to of 70976

I tried to spout my $.02 in these links and, at times, was "beat up" for allowing that something berry, berry sinister might be going on in that nasty options market: Message 5916308 Message 5918982 And your getting F'd in AMAT on what you paid!! Imagine a stock w/o this HUGE volume in nigh all contracts regardless of date/strike. Ouch. Turned out AMAT did explode so the LEAPs were sweet but that doesn't discount someone's taking an awfully big, creamy slice of the cake every time Happy B-Day rings out. Make a wish.... RO