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Technology Stocks : Advanced Fibre (AFCI) ** IPO

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To: margin_man who wrote (1319)12/9/1998 12:24:00 PM
From: Douglas V. Fant  Read Replies (2) of 3299
 
margin man, I'm an old-fashioned "trader by instinct". I doubled up my AFCI position this morning at 7 19/32 share. I tend to look at options behavior for signs of future price directions. I've been watching the out-of-money March 99 call options on AFCI. I have noticed that when AFCI drops in price in this recent pullback, that the value of the March 99 options say a March 12.5 call is not dropping in sympathy in price but moving sideways and sometimes even increasing slightly in value.

Now bad fundamental news might send AFCI a little lower. But the options are suggesting that AFCI wants to go upward....

Sincerely,

Doug F.
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