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To: Spekulatius who wrote (40728)11/24/2000 2:48:42 PM
From: s.pecunius  Respond to of 436258
 
If it is getting worse for Chrysler there will be huge pressure for Schrempp to do something. This could bring a big bounce for the stock. If "Wunderwaffe" Zetsche fails it's over. OTM calls have the perfect risk profile for this situation, much better than the stock in case of a sharp rise or even a further decline. A straddle should do it, too.
VW: nice rally, loosing steam at the moment, must hold 55 (z)euro. I think that the good USA situation for the German car makers is already included in the stock prices. Fuel prices here in Germany are rising again, 2.10DM/l, increasing tendency. Not too good for auto makers...
(perhaps not valid for the luxury car makers: a TV magazine made a test and charged 3 DM/l. Many drivers paid the bill without any further questions...)