Implied Volatility Message Board

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Strategies & Market Trends : Implied Volatility

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To: Merlo who wrote (16)	7/24/1997 12:50:00 AM
From: John Liu	of 44

One stratregy that has worked for me so far(by accident) is to buy the stocks of companies that are being greatly shorted because if the stock rebounds then the short would have to cover and therefore add more fire to the hot stock. All this and I don't really think that there is that much more premium. One stock I am currently in right now APM has close to 50% short. Last month when it exploded the option went up over 400%(from the low 3 days earlier). This might be the case when you get added risk/reward without really having to pay extra premium. But on the other hand I always think does the big money know something about the company/stock that I don't. Good Luck, John John

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