Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.660

-1.5%

Dec 12 9:30 AM EST

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To: Vitas who wrote (6432)	2/24/1999 1:34:00 PM
From: Haim R. Branisteanu	Read Replies (1) of 21876

Hi Vitas, I hope you are pleased of being out of LU as of yesterday. Wrote LUOA at $4.5 and LUCB at $4 today premium to collect if LU trades between 105 to 110 until expiration, of $850 per contract. Delta is neutral (0.44 and 0.41 or around 7/16 per option, and 7 day Theta around 0.77 and 0.88 or apx.1/8 per option /day) Implied volatility around 48% Trade will run into losses if LU dips below $97 or rises above $118 but from a practical matter will close before expiration. Or in other words my risk is that I will be short LU at $118.5 or long at $96.5 if the stok breaches those ranges. The positive point is that I am make around $165/7 per contract pair, for each day that passes including weekends <GG>. Or $165/day on seven contracts. BWDIK Haim

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