How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 476.93

+0.6%

Nov 25 3:59 PM EST

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To: Uncle Frank who wrote (16286)	2/18/1999 1:51:00 AM
From: t2	Read Replies (1) of 74651

Uncle Frank, That was the one order that i had that did not get filled--i think I was at 5 5/8 (don't remember exactly). My logic is simple---165 becomes 82.5 post split 5 5/8 becomes 2 13/16 post split 150 becomes 75. Basically you have-call option strike of 82.5 selling @ 2 13/16 This is what it would probably sell at 2 week to expiry---strange!! Even if the stock dips to 140--or 70 , you are not far away from 82.5. These options, IMHO, will carry a lot of value at that time. It does not seem very logical but i think it will happen. All that is need is a little momentum buying into the split--can unload after split or wait til day of earnings--I prefer not to hold options past earnings. IMHO, the volatility on the MSQ's will increase significantly going into earnings. Even if MSFT hits 160 or 80 post split--you should make a great profit. That is my guess. I gave the earlier example when Dell traded at 92 on day of earnings, the Feb100s were at around 1 11/16!!! These expire Friday. BTW--i am no expert on how options are priced--Just basing it my experiences in the last year. Actually, I don't want to learn the pricing mechanism.

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