How high will Microsoft fly? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly?

MSFT 486.98

-1.4%

Nov 19 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: PMS Witch who wrote (14432)	1/17/1999 11:18:00 AM
From: J. P.	Read Replies (4) of 74651

<<<Tuesday between 10:00 and 10:30, initiate a 'bull spread' by buying at-the-money February call and selling equivalent call with a strike price $5 greater. Tuesday between 3:30 and 4:00, close this position and buy February puts with a strike price $5 below current stock price with your profit. Be prepared to close this position Wednesday or Thursday with a reasonable profit. $5. DON'T GET GREEDY!>>> Are you going to actually use this strategy? The implicit assumption here is that Microsoft goes up on Tuesday and tanks on Wednesday. Now if you're so sure, why bother with a spread on tuesday? Why not just go long the in the money calls because the return would be better, and the commissions would be less to unwind. I think the second assumption of a Microsoft tanking would be the riskiest, and there's where you would be better off with a bear spread to offset your risk. But if you are so sure, my advice would be to sell premium, since that's where your best profits would be. I used to do call selling, credit spreads and things like that. And I used to do short term speculation on options like that too, but after thousands of contracts gave that up. Now I just buy puts or calls for a few bucks and wait for them to go to 15-20 and sell. Good luck to you, and hope you're wrong! I think Microsoft powers through the week to the upside.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next