Trading IOMEGA based on technical analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Trading IOMEGA based on technical analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ben Antanaitis who wrote (1225)	10/23/1997 5:04:00 AM
From: Yikes	Read Replies (1) of 1511

*OT* Ben, Your Article on Stock Price and Options Expiry Ben, I have been tracking options data for two months and doing the exact same thing you did on a dozen stocks, IOM and SUNW included. I've learn a few things from the process: (1) The minimum is not absolute. From the graph, the $3 million minimum at $40 should be bounded by $4 million from $38.50 to $45. This range should be your target, not $40. The stock price is 'pulled' toward this range through-out this month. For some stocks, I even cast the bound over $5 million from the minimum (Intel for example). (2) During the last week however, one only needs to look at adjacent calls and puts whose strike price bounds the stock price. For example, if SUNW remains at $38, then you need to compare the 35 calls and 40 puts. Which ever is significantly greater has a better probability of prevailing. There is one caveat to this. If stock price should hit $40 for a few hours, then it has a tendency to snap back toward $35. This is because some put writers are taking the chance to close their position. (3) Of course, during earnings season, all bets are off. :-) Yikes

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next