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

To: Electric who wrote (30200)	12/3/1997 9:41:00 PM
From: Soumen Barua	Respond to of 58727

Nice to hear about stock manipulation. If a stock does not have a huge following and the price is below $30 then it could be easily manipulated. You can test this by watching that certain stocks will not break out a particular strike. The price will manage to stay 1/2 point off of a particular strike. Anyway, good luck to all. Bye, Soumen

To: Electric who wrote (30200)	12/4/1997 12:59:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

It's about one o'clock here on the East Coast and I'm a tad addled. I re-read my post and I'm quite sure I rambled....only because I have a lot of respect for the audience and I'm not quite certain what is a given and what is not a given. Again, a reference to "one-on-one" being superior to a monologue. No, I do not trade based on Premium, I try to 'divine' short term direction based on the short term movement in Premium. PREM is only a clue as to whether or not a sharp move in the market, over a very short period, is a valid reason to make a decision to close a position...that's all. If, for example, I decided before the open that I should go long OEX at (what's tomorrow...Thursday....the pattern tomorrow should be similar to last Tuesday, Nov 25th, so)....I would plan on a major intraday turn at noon EST with an eye toward a reversal at 3 EST. Now. My projected plan then, would be to go long around 12 EST and be cautious after the bond close. So that's the plan. If the PREM fights me tooth and nail on this, I most certainly have a bad plan, Nes Pa? Sorry Electric....I'm bushed. I gotta turn in.

To: Electric who wrote (30200)	12/4/1997 8:02:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

As far as option premium I have a book I'm trying to stumble thru that describes, amongst other stuff, how options get priced. Market VOL (Volatility) is responsible for the premium. I used to download option pricing each day to try to get a feel for "what swings cause what moves" and what was normal for what time for what trend etc. As you might have guessed by now, I would have needed a Cray to crunch those numbers....I gave up. But what I alluded to is easy to see, particularly as expiry approaches. Like I said yesterday....the options I pointed out are half of the VIX (Volatility Index). The OEX advanced yet the only ones who made money are the people who wrote those options.

To: Electric who wrote (30200)	12/4/1997 9:22:00 AM
From: Warren Van	Respond to of 58727

Electric, I am curious about your opinion of Dell. Dell has had only two precipitous drops in the last couple of months (late October and second week of November). Otherwise, Dell stock has shot up or leveled off to base in the last two years or so. What reasons do you have for shorting Dell or buying puts? What TA or FA reasons do you have for your opinion? Also what magnitude of downturn and duration of downturn do you foresee? Thanks. -Warren