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Technology Stocks : EURODOLLAR - SOFTWARE GOLDMINE -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (39)	3/8/1998 1:07:00 PM
From: Sal D	Read Replies (1) \| Respond to of 124

Edit should have posted this on the Amigo thread my apologies. Sergio sorry to take up more of your time with this option thing but I so much want to understand (anyone else who has any thoughts on option trading please feel free to comment) referring back to post# 1474 I have some changes. Heres how I figure it.(using the same data from post 1474, the close on Thursday 3/5/98 for NRL) Assumptions are I am following a stock and I believe the price is going to go up and I want to buy a call option. First I figure the implied volatility on my calculation day (3/5/98) then I pick a future day and what I expect the price to be. I then recalculate using the new date, my expected price and the implied volatility I figured in my first calculation. For my example I will say I expect NRLs price to increase 10% from 23 3/4 to 26 1/8 by 4/15/98. Using this information the best buy as I see it would be the April 22.5 call at 2 1/8. With a stock price of 26 1/8 on April 15 the call premium should be around 3 5/8. I bought the call for 2 1/8 and I sell it for 3 5/8 ( call me stupid but Im still not sure how the buy sell on the call itself works verses converting the shares maybe its to simple for me to understand) Who would by a call option from me 2 days before expiration that will be worthless. Im sorry maybe I dident research this enough or just missed it somehow. In other words I need to research a stock and figure out what I feel the price will be down the road before I can analyze an option. The mathematical foundation I use is the Black-Scholes option pricing model, developed by Fisher Black and Myron Scholes in 1973. Joe

To: Sergio H who wrote (39)	3/8/1998 4:08:00 PM
From: wizzards wine	Read Replies (1) \| Respond to of 124

Hello Sergio, P&F Responce for the following: Note some of the foriegn stocks are not listed. COGIF RS signal POS RS column X's Trend POS P&F signal BUY Momentum POS After a 20 box run up, the stock now appears to be consolidating forming higher lows and lower highs. A move to 23 would form a diagonal triple top, the sign of a strong up trend. A move to 18 would for a double bottom and would be a stop loss point and sell signal. CRYSF RS signal SELL RS column O's Trend NEG P&F signal SELL Momentum NEG A ten box drop in a column of O's and well below it bearish support line. This one needs to shape up before considering. ISIL ALL P&F NEG A 12 box drop in a column of O's and below its bearish support line at 16.5 She needs some time. MIFGY All P&F is POSITIVE A 19 box run up and then cycling between 48 and 52 four times before tearing up another 11 boxes to 59. A stop loss of of 47 would form a double bottom sell signal. A pull back to 54-55 would be a nice entry at reduced risk. PTUS All P&F is NEGATIVE Broke a second double bottom sell signal on 3-4-98 and is below its bearish support line which is at 18.5 SPNSF RS signal is BUY RS column X's Trend is POS P&F signal SELL Momentum POS P&F signal in in a column of O's just above it bullish support line which is at 6. If it crosses below 6 it gives another sell signal. A move to 9 would break a double top giving a BUY signal. Next resistance then is at 10 and 10.5, 11 would be a technical breakout and a very positive signal. TAVA All P&F is POS A move to 10 would break resistance and be a technical break out. A move to 7.5 would be a stop loss and form a double bottom sell signal. It well above its bullish support line which is at 4.75 VIAS All P&F is NEG A VERY BEARISH chart. Below bearish support of 34. I now have all of these in a portfolio and will keep the thread updated on any changes. Will follow with further reviews as I get the data. One of Jan's students with no name. Great work everyone. Later Preston