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

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To: Don Bebout who wrote (15)7/3/1996 9:34:00 PM
From: farouk a. hassieb   of 140
 
Don on MU and BAY,

These stocks have been beaten to death and "drained" of any significant volitility over the past 3 months. I would be looking at longer term straddles on these stocks. Read my post to Gerry on which stocks I feel are good straddle candidates. I would never buy a straddle on earnings the day before expiration if I was not dealing with a very volatile stock. I am looking for the big jump or fall. I am confident that IOMG will be extremely volatile after earnings and I feel it is a prime straddle play. One of three things is likely to happen; 1)IOMG beats estimates>It will skyrocket, 2)IOMG matches street estimates>It will go up considerably, and 3>IOMG disappoints>WATCH OUT BELOW!!! All three scenarios spell PROFIT in my opinion, but this is just my opinion.
Regards,
FH
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