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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (291)	5/17/1998 9:17:00 PM
From: Thean	Read Replies (1) \| Respond to of 14427

Steve - if you want more than 12% premium to write a June call, look at SEV. The SEV story is simply everyone is waiting for the big news to come next week. The expected big news is they successfully found oil in their latest well and therefore increased their reservoir by quite a bit (can't get into the number here since I have to look it up). Currently the stock at $22.5. $20 is a very strong support as SEV just bounced off $20 the second time (double bottom). $30 is the ceiling but in most analyst calculation if this latest well is good the fair value of its stock is >$30. I think you will like this one. I'm already loaded to the margin on this (both in the money call June call and wrote Jun 30 Put and stocks) but I'd like to know what you think on this. LT, The Fed is meeting on Tuesday. Monday is typically weak. I would like to see MU move and close below $25. If it can't do that, MU will have a chance to rebound to $27.5. If MU closes above $27.5, I will close out my position - can't let that double slip away. However, I may come back and put it again. Now I think a lot can happen with Dell reporting earning and a conference call scheduled. Any hint of continuing competitive pricing in components will be a negative for MU. Drillers - tomorrow and possibly Tuesday will confirm the short term trend of OSX and thus the drillers. If OSX breaks and closes below 112 tomorrow, then technically its chance for a reversal is going to be slimmer. If it closes at 112 then Tuesday will be key. However, I'll still look at oil and see how it will react. API comes out on Tuesday and if anything I think the estimate this week is negative on crude but positive on distillate. The drillers may do nothing between Monday and Tuesday if crude trades in a narrow range. If crude can break $15, then a reversal may happen.