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: Jeff W. who wrote (4033)	1/26/1999 1:22:00 PM
From: SJS	Read Replies (2) of 17183

Jeff, Note the classic case of option "deflation", after earnings. Look at the Feb 90 puts, for example. The stock is down 1 1/4, and the PUT option has deflated 9/16. In theory, if the stock is down, then a put would move opposite of the stock. Not so today. The calls have had more erosion, because it is compounded by the stock price being down, too. As I was saying, that is risk you can sell and profit handsomely if you are correct. If you bought that risk, you would be an instant loser even if the stock stayed the same on the day. Just something to note when you play with options.

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