The ultimate play:STRADDLES on earnings announcements. Message Board

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Strategies & Market Trends : The ultimate play:STRADDLES on earnings announcements.

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To: Robert Sherman who wrote (94)	6/16/1997 1:58:00 PM
From: Carl Zbad	of 140

Robert, I look for volatility in stocks when choosing a straddle play. I like your idea of strangling Dell. It's been a high flier. If we get a severe market downturn, DELL Puts could really pay off. OTOH, if the market stays strong DELL could show more upward gains. The only way you could really get hurt is if DELL moves sideways within a very narrow range until options expiry approaches. I recommend opening your position with fairly long-term options. Give yourself time. I've been working the networking stocks - lots of volatility over there. I don't want to straddle COMS right now, though. Now that the merger with USRX has been approved, I'm afraid volatility in COMS might dry up for a while. Take a look at CIEN. It's been a high flier, and it's now getting bloodied (down over 3 right now). It might go through some price swings for while. These are just my thoughts that you asked for. Please don't make trades based solely on anything I said here. It's just MO. Regards, carlzbad

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