Stock Attack -- A Complete Analysis Message Board

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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: Electric who wrote (14440)	8/11/1998 5:21:00 PM
From: AlanH	Read Replies (1) of 42787

Electric, Only if the stock splits.. If it splits then the stock will likely run past 120, given fair market condition... I'm unclear on your assumptions. [Discounting early assignment] On Aug 21, if DELL = [102..122] then DELL 110c Aug/Sep time spread should be profitable given current prems. Of course, the range fluctuates based on implied volatility; in any case, the position benefits from time decay and may also benefit from increased volatility. While the earnings event (8/18) has the potential of reduced volatility, the potential exists for volatility to increase up to earnings release. BTW, I've selected 110 strike vs. 105 (although 105 exhibits a higher theoretical profit) as a buffer against a swift rise into earnings. Good luck, Alan

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