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Technology Stocks : How high will Microsoft fly?
MSFT 478.52-2.8%3:59 PM EST

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To: Ibexx who wrote (1962)7/10/1997 9:38:00 PM
From: Sadim Gnik   of 74651
 
Ibexx, re. <<...since your last post which ended with a composition of verse...>>

Ah yes...but alas, it just doesn't seem as much fun without jmac around to annoy.

I'm interested to know how you apply your ideas specifically to MSFT. I feel the urge to increase my 'delta' in this area but I'm gagging on the P/E (above 60) at the moment. I have concluded that on average, LEAPS for a no-brainer stock (MSFT) tend to be a neutral play because their premium is closely related to their historical gain (consistently high). I try to identify and exploit temporary distortions which, given a little patience, seldom fail to appear.

Regarding DMI and LEAPS, do you use the simple interpretation (buy/sell when DMI+ crosses above/below DMI-? After looking at MSFT's DMI chart, it would seem that it suffers from the same malady as do many technical indicators which are backward-looking (especially BB). For LEAPS in particular, a lag of only a day at the beginning of a significant upward move can eat a lot of potential profit as the surge in volatility beats the technical charts to the punch.

Too bad Anne Bingemann has left (is leaving?) the JD. We need more pinko-commie nut-burger blathering to drive the MSFT lemmings temporarily over the cliff once in a while.

Sadim (unapologetically unreconstructable) Gnik
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