How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 491.12

+1.7%

3:59 PM EST

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To: t2 who wrote (23809)	6/8/1999 2:01:00 PM
From: Just_Observing	Read Replies (1) of 74651

High Volume of July 70 Calls The volume of the July 70 calls is 9100 now. The open interest was only 5690 before today's trading. This option has traded between 12 3/8 and 13 1/4. I don't think that one buys deep in the money calls instead of the stock or less deep in the money calls if one is bullish. Instead, one sells deep in the money calls if one is bearish. So, I view the high volume in the 70 calls as more of a negative than a positive (I've been wrong often). If I wanted to play MSFT to the upside, I would buy the July 75 calls (for 8 1/2 volume 410, O.I. 19,400) or the 80 calls for 5 1/8 (volume 1300 O.I. 24,900) before buying the 70 calls. The relatively low volume in the 75 and 80 calls suggests that people are probably selling the 70 calls. Thus, IMHO, the high volume of the July 70 calls is a bearish indicator. Good Luck

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