Micron Only Forum 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.

Technology Stocks : Micron Only Forum

MU 252.40

+2.2%

Dec 9 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: DavidG who wrote (27905)	2/6/1998 12:48:00 PM
From: John Graybill	Read Replies (2) of 53903

The "sell 100% hot air" strategy is a special-case of sell hi, buy low, if it expires worthless then I don't even buy it back. Right now, I could sell a Feb 30 put for 5/16 and a Feb 32 1/2 put for 13/16. The Feb 30 is chump change, quite frankly. I'd rather sell the 32 1/2 for 13/16 and maybe have to buy it back for 1/16 the day of expiration if MU is anywhere near 32 1/2. If MU does indeed go to 30, then I buy the 32 1/2 back, maybe at a loss, but my July's have appreciated somewhat as well and I've got 13/16 of "hot air" in my pocket. Of course, I'd rather wait for a dip to sell either one! This is why I say that simple open interest is not absolutely indicative of which strike price they want to burn.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next