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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?


To: RetiredNow who wrote (34137)11/8/1999 10:42:00 AM
From: Matrix_Man  Respond to of 93625
 
mindmeld, this is precisely the situation I look for when I am interested in a straddle. MSFT may go way up, it may go way down, but I bet it does both. Either way I think it will be very bumpy and volatile. I did this with RMBS when the bottom dropped out recently. Bought Nov 60 puts and Nov 70 calls. Lost about 2k on the puts, made about 25k on the calls. (Of course I was lucky enough to see the writing on the walls and sold the puts a couple days before it rocketed back to 90 area.)



To: RetiredNow who wrote (34137)11/8/1999 11:27:00 AM
From: Zeev Hed  Read Replies (1) | Respond to of 93625
 
OT, mind, of course, in the case of MSFT, it is priced under the assumption that it sales could reach 100 billion bucks a year in the foreseeable future (what is that nowaday? 10 years?), and I fear that this is quite generous for this stock, so it may have not few months, but few years to get through price readjustment to reality.

Zeev