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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (51655)	9/6/1998 12:36:00 PM
From: Dnorman	Respond to of 58727

Don: I appreciate the detailed answer as I have been playing the put options on the OEX. It looks like this may be one way to do a entry spread on OEX when the premiums are out of whack and closing one of the legs when they get more in line. How would you go about placing a spread order to insure your spread will be what you want? Rhanks Dennis

To: donald sew who wrote (51655)	9/6/1998 3:44:00 PM
From: Lee Lichterman III	Respond to of 58727

You spoke of no reason for a run into October. What about the usual pre earnings runs on many of the tech stocks? I think it is high plausable for a dip through expiration this month but then a push up by the big money to make the sheeple think things are alright. They have been programmed to buy DELL before earnings among the other street darlings. This would be the fuel to keep the ball rolling while the funds liquidate their final holdings they were unable to get rid of earlier. The last 2 earnings seasons, there have been larger run ups followed by larger sell offs once earnings were released. This could be the last chance for those wanting to unload before the long slumber in the market. Just my thoughts on the matter. Also, Lisa I believe was asking about stock picks due to the OEX put premiums etc. I have been eyeballing IBM for the last week but have been unable to play the market the last few weeks due to my day job work load. This seems too easy. 123 resistance with a downside of 105 eventually and 115 short term. It went through the cycle Friday once already, almost like a sneak peek preview. my only concerns are ... Why is it holding up so well so far and why isn't there more volume on the puts. There were only a few hundred puts traded despite the 7 point swing Friday. In your opinion, would there be a problem trying to get out of Big Blue once your time has come. The 110s are reasonably priced and look like an easy double with even more possible. PS - Have you noticed the puts at our old highs in the 600s have vanished on the OEX. People cashing in and locking their gains or is the money buying them back knowing they will lose even more down the road. There were 20K open contracts a few weeks ago around the major strike prices. Now they are all gone. Thanks for the great calls over the last few weeks. I lurk rather than post most of the time unless I disagree or have a question. Thanks again, Lee