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: Jay Baca who wrote (116)	7/22/1997 6:13:00 PM
From: John Liu	of 140

So far in my three month "experiment" with options I learned several things. One of which is to never buy anything that have little interest(barely got out of several with small lost) and definately do not use market on anything. I read that Norfork Southern announced a split today so I checked their option prices but they were too expensive(over 5 a contract). I wonder when do the options of companies that rise alot get changed so that cheaper options(higher targets) gets added. So far I have only traded options in the .75 to 1 1/4 range. Right now I am in two options(APM and C-Cube). Found one of them by looking at Value Line and other one from a magazine article. So far I have lost money on the options that I bought because of bad news(buying on day of bad news hoping for a rebound next day or week) and lose abit of money on options that I bought because of suggestions from SI and/or magazines. My holy grail has been options I picked up because of recommendations by Value Line(APM and Pairgain) which the market depressed(The stock price because of other analysts, bad momentum technology questions.....) but which value line still liked. So far I think I am up a little bit(Down alot overall because of penny stocks). I "only" have around $6500 left to invest. Any new money I decided will go into mutual funds. Thinking of setting up an automatic buying and selling of options on the basis if the several stock analyst company(Value Line, S & P Outlook,...not Charles Shrawb,Merill Lynch..... because it seems when ever we hear that they recommend a stock it already has risen too much) recommend a particular stock then to buy the option. One problem with that though is that I usually do not like to buy stock with a high P/E. Anyways so what are you looking into right now and/or what have you had good or bad luck with(strategies). John

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