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Strategies & Market Trends : Options

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To: The Reaper who wrote (499)1/2/2000 1:22:00 PM
From: Neal davidson  Read Replies (1) of 8096
 
<<Two things stand out to me regarding this strategy.

1) The leap spreads are around 5 pts. so I don't think that buying at the bid is doable. However, it still seems to be a pretty cheap premium to pay for these leaps.>>

In the interest of precision, the bid-ask on the ZNOAZ is 117 3/8 - 118 7/8. The premium is cheap, and I think this bargain will disappear early next week. I do not think that the lack of premium is indicative of an impending townturn in the common. Rather, I think this is one of those rare moments where the market is not quite efficient, and we as investors can take advantage. Like I said, I do not think this will last. A stock with QCOM's volatility (9% move on Friday alone) should not have such a small time premium IMHO.
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