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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: SMALL FRY who wrote (112031)8/17/2000 8:16:42 PM
From: Jenna  Read Replies (3) of 120523
 
Options for earnings plays is not that easy. First you can't be getting options in slowing moving stocks with low option volume. You should look for at least 130 contracts that have already traded. Buying is easy, but selling options in a stock that is moving lower after a morning gap up or worse still is selling off at the open is a sobering experience. I've often found that when a stock opens at 9:30 at a high and begins to sell off, the options aren't even beginning to trade. Those precious 10 or 15 minutes can make a great difference in the trade.
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