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Microcap & Penny Stocks : Microvision (MVIS) -- Ignore unavailable to you. Want to Upgrade?

To: Uvula who wrote (4363)	3/4/2000 6:24:00 AM
From: kili	Respond to of 7720

Dear Uvula, I don't have a clue what it will do to the stock price but it can't hurt. First of all: This is great news! As JDN said: The fun will begin! Options are far more volatile than the underlying shares, and MVIS has been volatile... Inorder to create options available for the market, somebody has to issue then. It can either be done by guaranteeing (by means of a paid up margin) cash available for the execution date of the option -or by putting up the underlying share in a deposit account. Options will add to the tool box for fund managers who need to hedge their positions (other than shorting) as well as giving us (us: the very optimistic longs) a possibility of placing added bets on our investment for a small sum. If I were to make a guess right now, I'd say that the underlying expectation for MVIS is UP. This would mean that call options will be in demand. Issuing calls by means of depositing shares will tie down shares normally available for trading. Fewer shares available + interest increasing = price up. Not forgetting, however, that lower float also implies higher volatility... I'll be looking for options for sure. Out-of-the-money call. Since they will be available from next Friday, I'm just 'concerned' whether a May call strike 65/70 will be in or out-of-the-money. Since options, when correctly priced, gives an indication of what investors expect in the near future, this might indeed turn out to be a bag of fun. Kim