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Strategies & Market Trends : Best Option Strategies and Option Insight -- Ignore unavailable to you. Want to Upgrade?

To: Mr.Manners who wrote (144)	4/4/1998 3:58:00 PM
From: gambler	Read Replies (1) \| Respond to of 245

Looks like both of those stocks are splitting near April 17 or so. I love split plays they are so safe as about 95% of them go up after an announcement. The only problem is those options are a bit spendy for April with only 2 weeks remaining, but I definitely think they hit the next strike. Looks like MSFT hit 93 on Friday and not too many people were paying attention with only 10 million shares traded with a normal volume of 15m. Those 34,641,781 shorts as of 3/98 will be taking a leap on Mon I suspect and MSFT will break 95 barring a market calamity. April 95s are only 1 3/8 and April 100s are 5/16. So if we see a $5 rise in MSFT on Mon. April 95s will be worth $4 and April 100s will be worth 1 1/4 or so. So that's 290% on the April 95s and 400% on the April 100s. I would gamble on the 100s because they are cheap and with the HUGE leverage if this squeeze is really great they may be worth something. Although for all those reasonable people I would choose April/May 95 calls.