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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (2057)7/5/1997 6:20:00 PM
From: Stingray   of 94695
 
Good luck with GE, Bill. I've been playing with some numbers and I see around a 20% chance that GE will be hit 55 before the end of the year. (Don't ask me how I came up with that number, I'm not sure I fully understand it myself.) Based on the current prices of December puts I don't see anything that would pay off 5 to 1 on that event. If however GE were to go up between now and the end of August December 60's might get awfully cheap, especially with less time to expiration. In that case I may have found the downward play I'm looking for.
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