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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: SAMUEL MORANO who wrote (15084)	5/5/1999 8:57:00 PM
From: RocketMan	Read Replies (1) \| Respond to of 41369

Samuel, I'm sorry, but I am not the guy to ask about options. Never have done options, other than buy a couple of LEAPS. I'm sure there are those here who are into options and could answer your questions. I do understand your position, and sympathize with it. Although it is quite possible for AOL to move into the 160's before expiration, I would have to say it is a long shot at the moment. However, if the techs and the markets move up, and shorts begin to cover, then new highs are possible this month.

To: SAMUEL MORANO who wrote (15084)	5/5/1999 11:09:00 PM
From: Rangle	Read Replies (2) \| Respond to of 41369

Sam , Im in the same position . I have the may 160 @ 4 1/2 I think you will at least get a push,.... not sure how to roll them ,will find out though Good luck , Rangle

To: SAMUEL MORANO who wrote (15084)	5/6/1999 12:12:00 AM
From: J.C. Group	Read Replies (2) \| Respond to of 41369

>>i own may 160 calls at an average of $8.00<< Samuel - I'm sorry, but you may be SOL here! Why did you buy 160 calls, let alone a May expiration(AOOEL)? I hope when you say you own 500 you mean 5 contracts and not 500. At this point since the stock has fallen so much, your premium is substantially eroded (2 3/8 up 7/8). At least today it was up. I'm not for doing so, but you should have cost averaged down when AOL finally turned around today and closed on the highs. Right now, an offhand calculation I would say the stock would have to reach about 165 for you to break even. The premium will not come back as fast even if the stock moves up significantly. Personally, you should hold them close to expiration if the stock keeps going up. I doubt if you will get your 8 bucks back, but the stock may get to 145-150 by May 22. Or 'be a man' and take your loss know. It's a gamble so close to expiration. Remember as time goes by your 2 3/8 premium will erode fairly quickly. Also, as far a I know, there is no way to 'roll them into' the next month. Option contracts have a fixed expiration. From my experience if you want to play options, and for a very volatile stock like AOL, buy deep in the money options - calls or puts. You will pay more, but you wont be paying much for the premium and you will get dollar to dollar movement with the stock. If possible buy several months out, unless you're playing an earnings hunch or know something. In the end it's always better to sell an option covered against the stock than buying them. You'll probably cover at about $4, and the guy who sold them to you will pocket the $4 premium. Easy money. Good luck!!!