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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: johnd who wrote (34931)	11/29/1999 7:01:00 PM
From: Valley Girl	Respond to of 74651

Never expect anything to happen with options. It's a pure gamble, I don't think the stock's going anywhere until the case is either settled or there's more bad news e.g. Findings of Law. The market appears to share this assessment, so those December options are cheap! For 25 cents a share you can play MSFT for any good news it may have in the next 4 weeks. If, as expected, nothing happens, you've thrown your money away, and you can roll the dice again for January at a similar price. On the other hand, if there is good news, the stock easily rockets past the strike price and you run for the door with the swag. Thanks to the exponential nature of option premium decay, this appears to be cheaper than making one bet on the Jan calls. I wouldn't bet a lot of money on it, but for example I could buy 100 of the Dec 105's for around $1300 + commissions.