EMC How high can it go? Message Board

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Technology Stocks : EMC How high can it go?

EMC 29.05

0.0%

Sep 15 5:00 PM EST

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To: SJS who wrote (3998)	1/25/1999 6:17:00 PM
From: Jeff W.	Read Replies (2) of 17183

Thanks for the great framework from which to think about the strategy. To answer your questions: <<1) What is your expectation for EMC tomorrow, 1 week from tomorrow, 4 weeks from tomorrow. Your range of option strategies are dictated by your answers here.>> A: Tomorrow, either a) opening strong and continuing up for two or three days then selling off on profit taking back to near todays price before resuming its upwards move, or b) selling off from the get go (sell the news) and retouching mid-90s before starting its climb again. <<2) What is your goal with this trading event/decision? To trade the option for a ST down move in the stock? To hold the option to it's expiration, hopefully not getting called? To partially protect your downside? To protect against the earnings event? >> A: Yes, yes, yes, and yes. :) Downside protection against sell-off tomorrow is probably first and foremost. If stock sells off to mid 90s I'll cover options and hold equity, waiting for stock to resume upwards move once sellers are out. If we make a strong upside move to the 107 range and hold there over a few days, I'll cover the options and sell the equity for a profit and wait to buy back after EMC has its typical retracement. If EMC goes up and stays up on big volume, I'll buy more equity and wait for option premium to erode before covering and locking in profit up to 107 5/8. What do you think?

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