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Strategies & Market Trends : The ultimate play:STRADDLES on earnings announcements.

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To: Amir Desai who wrote (56)7/31/1996 11:27:00 PM
From: Avi Halpern   of 140
 
Amir, CHIR should split 8/2/96 and relaese earnings 8/8/96.
Usualy a stock will go up on split, and maybe up some more before earnings, then up more if the earnings are realy good.
So, Since I go for the "high risk = high gain potential" method I would probobly just buy some Aug 90 Calls and wait to see what the stock is doing the day before the earnings (ride the split).
But if you want to reduce the risk your plan sounds good. If you want to hold the stock its best to sell out of the money (but close to price) calls every month for that month, a friend of mine is doing that for years, but he buys only those stocks that have expensive calls.
I Thought about buying the Aug 90 calls but the market is still insane.

Good luck............Buy low, sell high (or sell high, buy low)

Avi
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