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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (1039)	1/26/2000 1:11:00 PM
From: David Lind	Read Replies (1) \| Respond to of 1235

Taxman, RE: Our discussion on earnings and option strategies, take a look at an intraday chart of ERTS for today (Jan25). A classic runup then sell-off the morning of the announcement. The pros who were holding during the runup usually sell off to the amateurs. Opening a trade before the announcement is very risky, because not every stock sells off and it is sometimes tough to predict reaction. But if an announcement stock does exhibit a sell-off in the morning,which most do, it will typically bounce right off the bottom. Just check the earnings calenders and watch the charts that morning. A VERY predictable pattern. Just watch the stock fall, wait for the uptick at the bottom, then pounce. -David