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

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To: kajtek who wrote (4518)8/19/1997 3:59:00 AM
From: Getcher   of 13594
 
<<Straddle seems to be good idea as AOL is unpredictable with going up. Do you think however that September give you enough time. >>

The problem with the Straddle is the double premium for TIME. Longer ones always seem to be too costly to profit on. If she breaks the 50DMA on an uptick in the DOW, AND, the shorts let her alone (two tough calls) then she will certainly get well below 60 and fast. If she doesn't in next few days we will see 71-72 in prep for heading down again. I see all of this as very very short-term (by Monday). This being the case, the straddle "can't lose" (Now if I haven't jinxed myself here ...).
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