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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Voltaire who wrote (12125)11/7/2000 3:03:03 PM
From: Jill  Read Replies (2) of 65232
 
Just voted. Got highlights in my hair first. Beauty first!

Implied volatility is interesting on calls--for instance brcm--I bot two batches of otm calls on the way down, and when I come home its down another 10 points from my last entry point (it's at 177) yet my calls are either even steven or slightly profitable. Because iv went up so much with the drop in the stock, and this morning when I started there were only about 30 now there are 163 trading.

Which means that actually, if you did a large batch, say 50 or 100, you could actually trade out for a profit while the stock was falling!

Of course the converse is true--if it flatlines the calls deflate, which is why I may buy some GLW Feb calls in the next hour as well.
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