Ampex Corp: Digital Storage Message Board

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Technology Stocks : Ampex Corp: Digital Storage

AMPX 13.82

+8.6%

10:48 AM EST

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To: Joseph A. Aboaf who wrote (2944)	6/2/1997 11:19:00 AM
From: W. Thompson	of 3256

Remember that saying I drummed in your ears a month or so ago? "Make a lot of money on a lot of little deals?" "Make a lot of money on a lot of little deals?" "Make a lot of money on a lot of little deals?" "Make a lot of money on a lot of little deals?" Well I am screaming it like a madman here. For example, lets say that you buy 10 contracts of Intel deep in the money calls in the morning and you pay $12.00 for the option. (Not tomorrow morning, I am making an illustration) and you immediately place a GTC sell at $12.75. That could by the way be the spread in that particular option trade. Anyway, it will not take more than a point to a point and a half in your direction to get filled and sold out. So you make 75 cents or 750 dollars for the day. Lets say you can do this successfully for half of the month. That is 11 times that $750 or about $8,000 a month. What is your outlay? About $12,000. So you made 75% for the month while actually making it on only 1 out of 2 days. Each day when you have made your money, you go home. You do not go back in. You know precisely what you want and once you get it, you go home. You protect yourself with about $6,000 worth of out of the money puts which are also way out in time premium. Now what if you cannot watch the screen all day? Then pass on this particular play. This one is for those who can watch it closely. But I am telling you, there is going to be such volatility in the next few months for Intel that this type of trade will yield profits almost everyday. The next thing is spotting when the stock is pausing for a continuation and thus an entry point or pausing and about to reverse itself. That is a whole other world and we will address it later. Time and energy willing. Disregard all of the above. I was trying to determine how to cut and paste on this thread. Thanks.

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