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To: Thean who wrote (1096)	7/15/1998 11:09:00 PM
From: Broken_Clock	Read Replies (2) \| Respond to of 14427

then...what about those mu puts again? it bounced off 32 on big volume.

To: Thean who wrote (1096)	7/16/1998 7:50:00 AM
From: SJS	Respond to of 14427

How do you want to play it? Selling a straddle means you want to the stock to be exactly at 50 at expiration. You sell a call and sell a put, matched. You take in both a call premium and a put premium for this. You hope the stock won't move outside the + and - band of the sum of your two premiums. Buying the straddle means that you think EMC will make a big move one way or the other, but you don't know which. You BUY a put at 50 and a call at 50, and hope the magnitude of the move in one direction overcomes the investment loss in the "wrong" side. You didn't say what your opinion was on the direction you think the stock will take. Once you answer that, you'll know how to play it. You might want to print that table I posted a week or so ago, on this thread. Personally, I will move to a short the 50 calls against a long stock position. I think the stock will close just under 50, but will definitely be influenced by the earnings release, Friday morning. Doing very well will move the stock into the low 50's. But the market's nuts, as you know. Who knows what can happen. However, I think EMC's earnings will be good. The stock is up 15% or so in 2 weeks.... It's going to be a very intersting day with earning and options coming due simultaneously... As far as commissions, your charged for each side. If you sell 10 puts and 10 calls you're charged for 20 contracts. Getting out is easier for a sold straddle, especially if you get the "perfect" expiration (all expire worthless (stock at 50) with no cost to you to get out). If you get a non-perfect one, you'll either be called, or putted, so to speak. There are transaction costs for that, too. They get ya comin' and goin'....