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

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To: farouk a. hassieb who wrote (25)7/8/1996 2:29:00 PM
From: Jeng Chiu   of 140
 
farouk,

I'm looking at August options on US Robotics and FORE.
July is cutting it too close for me on Iomega and SUNW.

I have a bias towards good earnings for SUNW, US Robotics, Iomega, and Fore.

I'll look to buy at the higher call price and the lower put price. I know it's not exactly straddling but that's my plan. I'm trying to reduce a little risk by Buying August rather than July.

I don't have a crystal ball, but the way I see it, only a select few companies will meet or exceed earnings (the aforementioned). They will all rise, and then fall again a month later when the Fed announces a hike in interest rates. We'll see.
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