Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site trwrba.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!ihnp4!houxm!whuxl!whuxlm!akgua!sdcsvax!sdcrdcf!trwrb!trwrba!suhre From: suhre@trwrba.UUCP (Maurice E. Suhre) Newsgroups: net.invest Subject: Re: options for beginners Message-ID: <1302@trwrba.UUCP> Date: Wed, 27-Feb-85 19:34:01 EST Article-I.D.: trwrba.1302 Posted: Wed Feb 27 19:34:01 1985 Date-Received: Sun, 3-Mar-85 05:43:51 EST References: <2782@dartvax.UUCP> Organization: TRW EDS, Redondo Beach, CA Lines: 19 Take a sum of money and leave it in the money market. Take the interest received and use it for your options investments/speculations. That way, you won't go broke when you are wrong. My broker says that when the news is bad, buy on the fourth day. I looked at Data General options then and didn't like them. I was probably wrong! The main thing to remember is that an option is a wasting asset. If you don't sell and cut your losses, they will continue to mount until they reach 100% for an out-of-the-money option. Stocks usually fall and finally bottom out. The other thing is that buying out-of-the-money options just because they are cheap usually results in all loss. However, you may strike it big. They are "long shots". Maurice {decvax,sdcrdcf,hplabs,ucbvax}!trwrb!suhre