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


To: Jim Lou who wrote (8069)3/24/1998 4:00:00 PM
From: Vikas  Read Replies (2) | Respond to of 13565
 
Jim,

During earnings-release months, you want to make sure you
participate in a potential rally with minimum risk. If you own
the stock, you may buy cheap PUTs so that you are protected
against a tanking. If you don't own the stock, you may buy CALLs
so you may participate in a potential rally should the stock
skyrocket. If you buy both CALLs and PUTs (buy PUTs during a
pre-earnings rally and buy CALLs during any pre-earnings decline),
then you bank nice profits in all scenarios EXCEPT if the stock
doesn't move at all (usually unlikely in ATMLs case). I have
played many such strategies with ATML in the past and am now ready
to jump in milking some profits out of this one again.

Vikas