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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: Tim O. who wrote (1897)	1/8/2001 8:59:12 PM
From: KFE	Respond to of 2317

Tim, I am watching CEGE closely myself because I have been stopped out of almost all of my position except for some which I have calls written against in an IRA account. Put credit spreads or naked puts on CEGE are not as attractive any longer because of the plummeting IV. If the skew is large enough a calendar spread in higher strikes(if your bullish) can give a better risk/reward and larger profit range than a credit spread and if you think that IV will increase it becomes even more attractive. Many positive things happening at CEGE but it will be hard to fight the Biotech carnage if it continues. Regards, Ken