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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: John Graybill who wrote (32309)	4/22/1998 12:19:00 AM
From: DJBEINO	Read Replies (5) \| Respond to of 53903

Detailed Research - Micron Technology Inc (NYSE:MU) biz.yahoo.com NEW FROM YAHOO

To: John Graybill who wrote (32309)	4/22/1998 10:25:00 AM
From: John Graybill	Read Replies (2) \| Respond to of 53903

Third good up-day for NASDAQ (+7 as I write), second day MU hasn't followed it. Most of the chip stocks are just wobbling around today, though -- $SOX is about even.

To: John Graybill who wrote (32309)	4/23/1998 1:53:00 AM
From: John Graybill	Respond to of 53903

Today's trading tip: SCALING IN! I didn't go whole hog on those May 25's, and boy am I glad. I'm got 10 contracts at 1/4 at 11:40 this morning, according to my broker. My plans were to buy 40, but my initial order was for 10 instead of 40. I'm never right the first time, no matter how much brow-furrowing I do, so my strategy is to add to a position after it starts to go my way (and not always then). Note that today's price action provides an absolutely perfect textbook example of option price-gouging. MU moved 2 9/16 which is exactly one strike price. So if you think that the price of an option at the same relative distance from the nearest strike price would be the same on both days, you would be WRONG! With MU at 29 this morning, the 25 puts were 5/16. But with MU at 31 1/2 after the close, the 27 1/2 puts are 7/16. Quite a difference -- this is "implied volatility" at work.