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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Jenna who wrote (6153)3/18/1998 6:02:00 AM
From: steve armon  Read Replies (1) of 120523
 
Jenna, I have been following this thread for some time and have been learning alot. I have also been reading as much as I can about trading options and I'm hoping you will comment on a particular option strategy I recently read about. Their method is to identify stocks with great volatility and then buy spreads on them. Their opinion is that if you buy a spread with expiration 4 months out there is a good chance either the put or the call will be in the money and that through this method fairly consistent and large returns on investments can be expected. Sounded a little too good to be true. What do you think? Thanks,
steve
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