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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Marq Spencer who wrote (11079)	6/18/1998 1:00:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 14631

If the price moves up to 8 then my target will be 7. If I write before 8 is reached, my target may be below 7, such as 6 3/4 for example. I do not know yet. Allot depends on how long this volatility of the stock will remain. The trading action on this stock that is allowing the MM to move the price may subside soon. The 7.5 CALL would not work for me with targets of 7 and below 7. So I would write the July 5 CALLs. Once the volatility subsides and the price stabilizes, then I may start writing 7.5 CALLs. I would in this situation (below cost basis) write out-of-the-money CALLs, but the time premium is just not there for me to make this a workable approach. So I have to play off of the volatility of the stock which means for this type of stock wait for events to move the price of the stock. Timing is very important in this approach as you know. This may mean me not shorting any CALLs for a period of time. Right now I am seeing IFMX having problems in moving past 7 1/2. Right now there is a resistance at 7 1/2 as defined by this being the peak value attained in this recent move up of the stock from 6 1/4. Also the high for yesterday's trading range hit the upper Bollinger Band which is also the stock's 50 day MA. Once the stock starts fading from this price level, I will try to write another set of CALLs depending on the price I can get for them. Bob Graham