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Technology Stocks : AOL Options for the Bearish

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To: The Duke who wrote (21)5/6/1998 3:52:00 PM
From: L.B.Nguyen  Read Replies (1) of 33
 
I just bought a few puts and a few calls, each at 1 3/8, @~$87. If AOL moves more than $5 either way tomorrow then I will make a few bucks. However, if AOL stagnents @~83-89 then I will lose both of my put/call by option expiration date. I may have to close them early. I have watched and paper traded this method for a while and it seems to be pretty safe play for the internet stocks. If I had played AMZN, with its 13+ point move, the option would had been triple on the call and -75% dropped on the put. Please comment on this methodology.
Thanks
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