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Technology Stocks : Coyote Network Systems (CYOE), Mixing It Up, IP and ATM

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To: Mama Bear who wrote (345)2/3/2000 12:24:00 AM
From: StaggerLee   of 360
 
Implied volatility has dropped to a measly 159%. Now the Feb 10 calls will only provide you with a 12.5% return in just over 2 weeks, while at the same time protecting you from losses all the way down to $8.625. Even then, you could roll the option down (i.e, buy the 10 back at a profit and sell the 7.50)and still probably earn some bucks before expiration barring a complete collapse. (Stock drops 20%, you still make money. Gotta like that.)

In reality, if you're selling calls and willing to limit your upside, it would probably take a drop well below $8 within two weeks to risk any loss whatsoever with CYOE.
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