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Strategies & Market Trends : Continuing the IFMX discussion and more...

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To: Marq Spencer who wrote (158)9/10/1997 8:20:00 PM
From: Robert Graham   of 206
 
The volatility got crazy on the day of the announcement and the options went up quite a bit.

Yes, excellent observation! As volitility increases, so do the value of properly chosen options. You can actually make a significant ammount of money in this way while the stock nets a zero gain because a premium is placed on volitility for options. However, IMO using this technique an S&R analysis of the stock becomes very important.

I would wait until tomorrow morning to see where the market is going before I'd do this.

This is very good advice. Never ignore the bigger picture (trend) of the market which ORCL is a part of.

Bob Graham
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