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Technology Stocks : America On-Line: will it survive ...?

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To: James F. Hopkins who wrote (3539)6/23/1997 2:47:00 AM
From: CLAUDE JOHNSON   of 13594
 
Jim,
Thanks for the link to Option Charts. Do you have any links to Option Portfolio Tracking (not just quotes, I've got that covered ... but stored option symbols with portfolio tracking).

I've been trading the options for quite some time as well. Typically I sell 'em (90% of the time at least). Only rarely do I buy 'em. AOL is the perfect opportunity to buy 'em.

The AOL 55's for July and Oct are ridiculous ... too high. But if anyone feels that strongly on an AOL fall, try this on for size:
Sell the Jan '98 65 Calls
Buy the Jul '97 65 Puts
Netting out a 1 3/8 Credit for each contract!

This is the gutsy way I tell you. No woman and children (hope no one takes this offensively)! You get paid to buy your puts that have virtually no premium left in them. When things go as planned, you buy back the Jan Calls, and sell the Jul Puts. But woe to those if things do not go as planned. I'd welcome any comments! Guts or Stupidity?
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