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Strategies & Market Trends : Options

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To: Teflon who wrote (5178)3/17/2000 11:55:00 AM
From: RocketMan  Read Replies (1) of 8096
 
Teflon, I agree with your picks. Now here is a very risky but potentially profitable thought on MSFT. A settlement with the govt is just a matter of time, IMHO, which will drive the stock up 50% in a short time. So, instead of buying long term calls, how about buying way out of the money April calls, cheap enough to get a 10-20 bagger if the settlement is announced. If it is not announced, you lose the money, but try it again in May calls at the end of April. Eventually you will have a 10-20 bags, and the bet is that this happens in less than 10 months, which would be a break-even point.
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