I am going to explain a relatively simple way to
make money in call options when you have a stock like
The value of a call option can be simplified to
intrinsic value (based on what the shares are worth now)
plus time value (based on the amount of time left
until the options expire and the chance that the shares
will rise in price). Ther are all sorts of fancy terms
for these such a gamma and delta, but don't let that
get in the way of you making money.
it is only a couple of months left for the option
before expiry the amount of time value rapidly decreases
and it all becomes a bit of a shark pit. So the trick
is is to buy a call option 6 months from expiry and
sell it, about 3 months from expiry. Then to make sure
it is nice and cheap the strikeprice (the price that
the shares can be bought for when the option expires)
needs to be about 10% more than the current price, this
is known as 10% OTM (Out of The Money) (ITM = In The
Money, ATM = At the Money)
More experienced options
traders than I have developed this little strategy and it
is known as the 6/3 Options Strategy.
stock like TTN you can expect an enormous leverage on
the return you would otherwise get. The sorts of
returns you get from options is that they magnify the
returns stocks which have big run ups and lose money on
stocks that only increase a modest amount.
problem that is ocurring with TTN is that the stock price
is increasing so much that getting OTM strikes is
If you were to put this strategy
into action the closer to 6 months and 10% OTM the
After 3 months sell the options and if
you still want to be in options, buy some more then
that are about 6 months from expiration.
with everything there are traps for unwary players, so
read up on Options at places like www.cboe.com before
you plunge in.
I purchased some TTN DE (April
2000, strikeprice 25, the closest I could get to 6
months and 10% OTM) when TTN was about 22, for
(1 options contract is for 100 shares)
just a few
days later they are 6 3/8, not far
off doubling my
money in a very short time). However, I am going to
keep them until it is 3 months from expiry (this will
be 3rd week in
January and if TTN is around 50
rising I will make 6 or 7 times my
more than making up for the other
There are some advanced tweaks to this
strategy, which I would be happy to go into if there is any
Go TiTaN !
Sorry to mis-imply that I got that from that
site. The first part of the post was to give that
information to videctr. The part about the institutions
buying in the $20's is from watching the 10,000 and up
block trades on quote.com and thomsons I-watch. (super
sell orders etc.) and info I received from a
stockbroker. This was my opinion based on my observations that
institutions are still involved. I should have started a new
paragraph and stated where I got that opinion. Go Titan
Videoctr...Sorry It took me so long. I was out to
dinner and away. The site I was telling you I would find
Enter: TTN in the company information block, hit GO and
scroll down. It takes a minute to load...
Look at all
the new institutional investors who are buying in the
twenties. You know they didn't invest just to break even.
To those shorts who are trying to talk this stock
down, why don't you e-mail the institutional investors.
Maybe you can convince them to sell because you aren't
going to get anywhere here.
The Titan Unofficial site has some of them
posted. I had a new site, but my wife threw out the piece
of paper with the url. I am looking for it and I
will post it when I find it again. Maybe one of our
other friends can help you with this. I thought it may
be on the sixer.com site, but I can't find it. Go
I'm the one who use the word "cult" - and my TTN
position is big, long, and strong. Chelens, I used the
term "cult" to reflect that TTN is not yet a stock for
the masses. That's why we haven't gotten the CNBC
coverage the company and the stock deserve (it is a great
story, after all); that's why the WSJ doesn't pick up
and run with things like the Wireless news that came
out on Tuesday night.
By the way, I think of
"cult" as a positive here - imagine what will happen
when the masses do catch on...check out Covered_10's
post on Apple (#11993 or 11994)