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Technology Stocks : Atmel - the trend is about to change
ATML 8.1400.0%Apr 12 5:00 PM EST

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To: VinWood who wrote (8072)3/25/1998 4:08:00 PM
From: Frank Chen  Read Replies (1) of 13565
 
Upward movement

After looking more carefully at the option open interest, seems like a possibility for upward movement.

The May month option parity point is around 17.5-20 and changing. For April cycle, it's around 15. If you trust the parity point (which is only correct 30-50% of the time, and notoriously inaccurate in earning months), then you can draw the conclusion that the chance for an upward movement is higher than that for downward movement.

One thing I'm uncertain is that how are they going to take care of the Temic acquisition, hopefully amortized over several quarters.

FWIW
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