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Strategies & Market Trends : Option GEMS - Hot Options in Booming Companies...

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To: Jenna who wrote (78)7/27/1997 3:23:00 AM
From: halfscot   of 396
 
Jenna: Is there a way to play this stock's options? Looks like there's a long way to go to the upside yet. What usually happens to cos. like CYMI with small floats? Would they have a reason to want to increase the float? I guess what I'm asking is what could you expect a small co. going like a rocket ship to do when their stock is in great demand and there aren't enough shares to sell to all the buyers, if that is ever the case? Wouldn't they risk diluting the existing share value by issuing more shares and incurring the wrath of existing shareholders? Or would the best way be to order something like a 3:1 stock split to increase shares while maintaining shareholder value? Would you wait for a pullback (hopefully reducing Implied Volatility and bringing down some of the premium) before diving in even though the stock has gone up over 14 pts. over the last 5 trading days with no pullbacks (although it is slowing down some)? And which options would you find to be the most attractive? Appreciate your comments.

TIA

halfscot
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