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RE: [RT] Options are confusing me..............



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Buy calls in the 
near month with strike price about 5-10% out of the money....unless expiration 
is imminent and will be reached before your TIME TARGET<SPAN 
class=300344301-14032002>....then goto the next exp 
month.
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In this case, 
either 32.50 or 35 April calls.
Example from 
today (in reverse using puts).... underlying settled at 
31.34
April 30 put UP 
55% today
April 32.5 put UP 
58% today
April 35 put UP 
38% today
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size=2> 
If Intel keeps 
falling, then the April 30 put will show the highest leverage (largest % move) 
as a percentage of the premium required.
<BLOCKQUOTE 
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  <FONT face=Tahoma 
  size=2>-----Original Message-----From: Sean Cassidy 
  [mailto:scassidy@xxxxxxxxx]Sent: Wednesday, March 13, 2002 11:12 
  PMTo: realtraders@xxxxxxxxxxxxxxxSubject: [RT] Options 
  are confusing me..............
  I have a stock trading system that has done a 
  very good job of picking stocks for me. Most trades generally last from 3 to 8 
  days. But........as I have mentioned here....I dont have enough cash to turn 
  these stocks into real money. So i was thinking options are a good way to go. 
  Cany anyone advise me of the best way to trade them.....in a simple easy to 
  understand way?
   
  For example my software is currently telling me 
  that INTC is a buy if it gets above 31.55...this is an actual signal. assuming 
  this play works....the stock will rise to 33.55 or so in the next few days if 
  it gets up to this price. What is the best way to play this....please keep in 
  mind I am looking for the maximum leverage. I have been using the system for a 
  year or so and feel comfortable with the risk.
   
  smcTo 
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