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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: KLN who wrote (58469)	7/22/1999 8:58:00 AM
From: TAPDOG	Read Replies (1) \| Respond to of 58727

KLN: Did you buy puts or calls? Is the implied volatility high or low relative to its historical prices?

To: KLN who wrote (58469)	7/22/1999 9:02:00 AM
From: broken_cookie	Read Replies (1) \| Respond to of 58727

KLN, Yes, I have some thoughts. I don't buy options right before earnings. Unless the upside is huge, the decrease in implied volatility is going to suck a lot of premium out of the option even if the underlying moves in the desired direction. Poor risk reward scenario IMHO. Since your time frame is months, I would have bought the option today. AOL has traded back to even on instanet the last time I checked. Good luck inyour trades. Rich return thoughts?