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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (35017)	3/25/2001 6:11:28 PM
From: Poet	Read Replies (2) \| Respond to of 35685

Somebody should send her a link to the CFZ. -g it's like she got that crp from reading YAHOO or something* Here's what Hahn has to say about MU, a contrarian perspective on the option OI: Micron Technology (MU) is probably going to be under $10 (it's 1998 price) by July, based on balance sheet analysis and slumping business prospects. After two days of short squeeze activity and a faux breakout, the stock could fall to support at $35. The short squeeze may continue for awhile, but the force of gravity persists. Part of my bearishness towards MU is directly related to the extreme bullishness showing up in the open interest of the MU options. The bar chart below shows the April expiration options by type. The left scale measures the number of contracts open. Please note the optimism surrounding this stock. Roughly, the open calls appear to be 4 times the number of open puts. Rarely is the vast majority rewarded in such a situation. Assuming MU naturally trades into April expiration at a level causing maximum premium decay, the price level of MU on options expiration day in April should be between $35 and $40. This would represent a 25% to 30% drop from current levels of $49.