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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Power ranger who wrote (9239)	1/30/1998 11:23:00 AM
From: BZOOKA	Read Replies (1) \| Respond to of 13925

PR,I still think 22 is where it will go before getting into overbought.

To: Power ranger who wrote (9239)	1/30/1998 12:52:00 PM
From: Howard	Respond to of 13925

Call contract prices vary substantially. normally, if the price of a call 6 months out drops I would think that it indicates that the market maker is trying to dumnp some inventory or someone may expect the stock value to be less pricey in July. However, with such a small fluctuation in value (from 1 15/16 to 1 13/16, it would seem negligible and more related to minor market fluctuiations or perhaps a market maker adjusting his inventory. I personally feel that by July Creaf will be a whole lot higher than it is at this time. Just look at the large move up today in the disk drive makers and how they bounced off their recent lows once the reality set in that there is real intrinsic value and that the Asian problem will not last forever. I'm still very bullish and long on Creaf, yet aware of what the other players and analysts are saying, as we all have to be with this volatile and paranoid market. Good luck to you.

To: Power ranger who wrote (9239)	1/30/1998 12:53:00 PM
From: Douglas Webb	Read Replies (1) \| Respond to of 13925

At the start of yesterday market when creaf was at 17 5/8, the July 25 calls was at 1 15/16 / 2 3/16. Just checked the option again today, with creaf trading at 19, July 25 drops to 1 13/16 / 2 1/16. Any comments? A bullish sign??? Actually, that sounds a bit bearish. I've been writing covered calls since last May, and as it happens I wrote the Mar 20 calls this morning on my Creaf holdings for $1 3/8. The stock price rose over $1, but the Jul 25 call stayed about the same (a 1/8 drop isn't terribly significant.) If the stock volatility had stayed the same, the Jul 25 should have gone up by around $0.40. Since it didn't, the stock volatility must have dropped. I beleive that's often an early warning sign of a trend reversal. (The recent $1/day growth increased the volatility; if the volatility is dropping that's because the market doesn't expect the growth to continue.) A trend reversal would be a good thing for us both right now. Once you write a covered call, you 'change sides', so to speak. A drop to the $17 area would let us buy these calls back for a fraction of what we sold them for, so we can write calls again on the next wave. Doug.