The ultimate play:STRADDLES on earnings announcements. Message Board

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Strategies & Market Trends : The ultimate play:STRADDLES on earnings announcements.

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To: Robert Sherman who wrote (88)	6/3/1997 8:57:00 AM
From: Carl Zbad	of 140

Robert, I'm currently playing ASND and CSCO. I like to find high profile stocks that are either streaking upward (CSCO) or in a rolling pattern (ASND). I've seen mixed results playing dead cat bounces. Sometimes these stocks don't bounce enough to warrant an option combination. High-flying, high-profile stocks with large upward momentum are good plays IMO because they tend to be metastable. That being said, CSCO went flatline on me as soon as strangled it - wouldn't you know it. But that's OK - I have Oct options on it, so I can wait for something to happen. The beauty of this strategy is that you can keep playing the position up and down by buying longer term options. It costs you more to get in, but you have greater opportunity to cash in over time. Regards, Carl P.S. I don't play pure straddles. I like straddle-type combinations. I like longer term put options, shorter calls.

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