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Technology Stocks : Atmel - the trend is about to change -- Ignore unavailable to you. Want to Upgrade?

To: Vikas who wrote (7644)	12/17/1997 1:41:00 PM
From: Frank Chen	Read Replies (1) \| Respond to of 13565

Vikas, I didn't got the time to calculate the Dec option push point. Is it 20 now? Several weeks ago when I checked it was at 22.5. I found the parity point for option writers could only be used as a reference. For semi stocks, which have high volatility, the scenario that expiration price equals or is close to parity price happens only <50% of the time, at least that's my statistics from my option writing. Recently, put writers are certainly losing lots of money on this stock if they really put lots of faith in parity point. I certainly wouldn't use Jan.'s parity point as an indicator for closing price at the end of the Jan cycle, since the earning would be out before expiration. This Friday's number might be very close to 20 if no more downgrades. So it's a speculative buy if you're willing to chase the half point. If by Friday it close above 20, that will break the upper band of the down trend line, that'll be a first positive in a long time. I expect it to be very positive, because the relative strength for the stock is so weak recently. Interestingly, no big movement in call or put open interests recently. Probably some big buying of call or put will surface in the first 2 weeks of Jan. Better watch it closely after New Year. Good luck! Frank