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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: .com who wrote (27738)	11/3/1997 10:33:00 AM
From: Hans	Respond to of 58727

scott, I too have noticed that stocks reporting good earnings tank. Look at CPQ. Perhaps their mistake was paying a dividend. Such tidings caused them to slide markedly. How about selling your CSCO calls, buying the stock, and selling ATM calls against it? That gives you downside protection and a small $ if stock moves upward and you get called out.

To: .com who wrote (27738)	11/3/1997 10:36:00 AM
From: broken_cookie	Read Replies (1) \| Respond to of 58727

Scott, IMHO holding through earnings has an unfavorable risk/reward scenario. I assume you're talking about Nov. calls. Any cautionary statements in the 10K may be focused on. Implied volatility tends to decrease sharply after earnings. Dell's last report serves as a good example. Company beats concensus, stock up 5-7 points a few days later, calls don't move at all. I think CSCO and the networkers are a good bet right now. All this is just opinion. Good trading.