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Strategies & Market Trends : Tech Stock Options

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To: the options strategist who wrote (48671)7/28/1998 11:24:00 AM
From: Nemer  Read Replies (2) of 58727
 
Jen:

This type of treatment of a gapper has made me money in the past ---------

The stock should be in an up trend and bouncing off a price support.

The company should be a member of a strong sector.

Once the stock has gapped open to the upside in the morning and has traded for a half hour, the entry point at which to buy will be
1/4 point above the high of the 1st half hour.

I have found that this works best when the move of 1/4 above the 1st half hour's high occurs mid day or even later in the day.

Should the gapper move the price of the equity from beneath an widely followed moving average such as the 50, 100, or 200 day to above it ----- there seems to be a compound strength in the updraft.

Regards ---- Nemer
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