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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?


To: Madpinto who wrote (1632)9/14/1999 4:26:00 PM
From: satish kamat  Read Replies (1) | Respond to of 2241
 
Madpinto, can you or somebody else help define an option strategy for following situation:
CMTO, a leader in cable modem and headend has failed the certification process twice, each time resulting into slides from 20 to 12. Currently it is trading for 14. They will try next round to be announced in early December.
Should one buy Jan calls for 12.5, 15, 17.5 or 20?
Is it worth in such situation to sell puts for 12.5?
IN the CC after the second attempt, company said it is confident about the revenues in sep quarters.
Thanks in advance.



To: Madpinto who wrote (1632)9/17/1999 2:38:00 PM
From: Hectorite  Respond to of 2241
 
Go to the CBOE web site. Download the options calculator program from the "Tools" section. It's a nice little program.