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Technology Stocks : WAVX Anyone? -- Ignore unavailable to you. Want to Upgrade?

To: Tony McFadden who wrote (7174)	5/28/1999 4:05:00 PM
From: SDR-SI	Read Replies (1) \| Respond to of 11417

Tony: There is some pretty good introductory tutorial information at the CBOE site: cboe.com Steve

To: Tony McFadden who wrote (7174)	5/28/1999 7:33:00 PM
From: Craig Sutton	Respond to of 11417

Tony / Others, besides the technical specs of options, they can be a wonderfull look into the future of a stock. As people see a stock going higher / lower. I have bought / sold options before and also a great way to invest in a stock that by itself may be too high to gain control of enouph shares to make your wallet spin. Be carfull though, read the RISKS so you don't actidently place the wrong type of trade. ie uncovered calls for one can hurt if you don't play them correctly. Good Luck, THIS IS GREAT NEWS !!!

To: Tony McFadden who wrote (7174)	5/28/1999 8:51:00 PM
From: doormouse	Read Replies (2) \| Respond to of 11417

Tony, The Russian saying is "no risk, no champagne." Attractive homilies aside, options can have you retire early or die. A relatively small amount of money gives you the right to purchase the stock at the strike price at any time prior to expiration date; a few dollars allows you to "control" a much more expensive share. I'm sure some of the folks have/will post links to excellent explanations,,, just beware: unlike stocks, that have intrinsic value (more or less) and which give you an indefinite period to win, lose or draw, options become worthless if the stock doesn't make it significantly past its strike price by the third Firday of its expiration month. (And, of course, a large proportion of options are traded "along the way," as their price will change in corresspondence with the progression of the stock price. If you're right in your bet, [you can buy "calls" if you believe a stock will go UP, or "puts" if you believe it will tank down] your $1000 can become a ten bagger. However, something like 80% of options expire worthless. Be careful, very careful. You'll notice that, on options expiration Fridays, many stocks will finish "right on the money" of the most popular strike price,,, The option buyer loses if the strike price of a call or a put is $30 --- and the stock finishes at $30! He's lost his entire premium --- to be in the money, a win, the stock must finish at the strike price PLUS the premium paid for the option (for a call). I've gotten lucky a few times,,, maybe not quite lucky enough to make up for the damage I've incurred by losing the premium I paid in its entirety. With many of my bad, dumb, or just-too-soon stock buys (dumm inguneers can be so ahead of the pack :) holding, holding, holding can lead to recovery or better "when the world catches up." :) (As happened to WAVX recently,,,) The options trading does mark a kind of graduation day for this little stock,,, all sorts of new games and players,,, all sorts of new engineers coming now,,, I hope this helps. Everything I've said is approximately true. I'm sure there are guys who know much more. Just be careful, very careful! I'm somethin lyke a dumm ungineer to! :)) .k