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Strategies & Market Trends : Tech Stock Options

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To: Judy who wrote (22159)9/5/1997 4:20:00 PM
From: The Jedi   of 58727
 
Flipping options just take deep in the money (no implieds there), then one could use great leverage and this would take care of the high commissions.

100 shares of BAYS at 38 = $3800
For $3800 could get @ 7 3/4 BAYIF (Sep 30) about 5 calls that is control 500 shares

Bay moves 3 points

100 shares get you $300 profit minus $28 commision round trip = 272
5 calls get you $500 profit minus $60 commision round trip = 440

A profit difference of 61% or more. 440-272 = 168. 168/272 = 61%

Details, details, data, data ....

Well the mother of all signals fizzled. But today would have been the day.
WDC is still a buy. Despite the up today we should visit this level once again next week. My range is 43 - 46 for a buy. But if you are looking at buying Jan / Feb options I think this is OK time.

Kiri

As for looking options symbols that is what we pay the brokers for. Other wise in this day and age computers can do the trading and we could just pay the SEC fees to sort out the problems. no need for brokers.
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