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: Ed Frye who wrote (73)	10/16/1996 11:14:00 PM
From: Sean McClellan	of 140

I get earnings dates from AOL, keyword First Call. First Call also list the number of brokers and upward or downward earnings revisions over the past 7-30 days. I stradled Iomega a couple months ago and about broke even. I have one Oct 20 put which I didn't pay much for, but last week I bought 6 Oct 25 calls for .75 which were worth 1.88 at the end of this day. I am beginning to think that an extreme stock like this, that you should be a contrarian and go the opposite direction of the underlying stock. I plan to sell tomorrow on a jump and if it is near enough to 30 buy Nov. 25 puts and possibly Nov. 35 calls. It just seems too expensive to buy puts and calls right near the strike price. I think IOMG is most likely to not meet estimates and unless it beats them by a wide margin, it will fall, but not quite as far as last time. I have only been trading options for 2 months but find it more exciting that the microcaps that I was previously trying to make money on and much less exspensive than buying good techstocks. The possibility for 100-1000% gains with not much capital outlay is exciting. Sean.

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