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Strategies & Market Trends : Gersh's Option trades -- Ignore unavailable to you. Want to Upgrade?

To: Mark Johnson who wrote (636)	3/24/2008 9:19:14 AM
From: Mark Johnson	Read Replies (1) \| Respond to of 652

Correction versus previous note on this thread. JP may up the bid for BSC. Look like BSC may hit around $10 today. Since the market has not opened yet I am going to make a modification per previous note. The BSC April 20 calls may open up higher or lower. If it opens up higher than the 15 cent bid on Friday, then it would make sense to instead sell short the $25 or $30 BSC calls assuming that there is a jump in premium. If there is no jump in premium, then the premium in the options were already factored in on the options and it would be buy the rumor and sell the announcement. There is still a way to trade (sell short) these options but you must be very careful on how it is done. Right now I like the idea of changing the trade to shorting the April $25 or $30 calls on the assumption that there would be an increase in the options premium for both strike prices. I'm guessing that it would be in the 15 to 35 cent range.