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Strategies & Market Trends : Options

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To: Poet who wrote (5865)4/3/2000 1:45:00 AM
From: Tim O.  Read Replies (1) of 8096
 
Gawd only knows where MSFT's going this week (though I have an idea...)

Would you mind sharing your thoughts?

I'm short Apr95P @ 6 5/8 and I'm trying to decide what to do. I'm thinking the initial down draft will take it to 100 then 95 and from there on 85-89 should hold. I think volatility will take it no higher than 100.

My current plan is to short the Apr95C (hopefully @ 6+) to create a straddle at 95. Worse case, I'm willing to buy MSFT at effective cost of 83ish.

Simplest action is just to close the Apr95P at probably breakeven. I just hate to see my gains vanish.

tim
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