Continuing the IFMX discussion and more... Message Board

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Strategies & Market Trends : Continuing the IFMX discussion and more...

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To: Robert Graham who wrote (120)	9/3/1997 4:12:00 PM
From: Melissa McAuliffe	of 206

Bob, << besides paying less of a time premium for my option, it will move more inline with the price of the stock now that it is "at the money" compared with the Oct>> Now I have to get out the options book again. Are you saying that a stock will have a higher delta if it has less time premium, i.e. the reason why the Sept's will move more than the Oct's. Either way I read what you wrote several times and assuming you are correct(which seems to be true so far) changed my decision to buy Oct's. I waited until five minutes before the bell to see if the stock would drop anymore and bought the Sept 60's at 2 3/4. I am already long with my stock and the Jan calls so I decided to go for a really short term play here. My logic was that the last several days, PSFT never sees the prior days close. So if that holds true tomorrow this will be the right decision. I don't think that 60 will be the new resistance but that it will be around 65 which was the prior high. I would be perfectly happy with a 40 or 50% profit in a day or two on this. Keeping my fingers crossed..my toes too!! Melissa

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