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Technology Stocks : EMC How high can it go?
EMC 29.050.0%Sep 15 5:00 PM EST

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To: SJS who wrote (3967)1/25/1999 1:46:00 PM
From: John Lee CA  Read Replies (2) of 17183
 
SJS,
I am new to option trading so have been doing the safe thing - buying/selling calls. Currently long in Feb100's.

I have been studying combo plays and would appreciate your comments on the straddle you described.

1. What are margin requirments for such a position? (i.e. how can I tell if I can afford the play?)

2. Since the wide BE range, why wouldn't everyone do this? It seems like a no-brainer.

3. Using both the Feb110 call and put gives about 16 on the spread but raises the low BE to 94. I suspect that is too risky so that is why you used the Feb90?

TIA for your valuable comments,
John
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