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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Money Maker (MM) who wrote (34177)	4/15/1999 7:59:00 PM
From: Jenna	Respond to of 120523

Earnings Plays and Option Calls.. The reason I got into more options today than usual was directly attributed to the earnings next week. It was planned from the very onset. I did change some of the plan and picked up VRIO instead of BVSN and since VERT doesn't trade options I had to let it go. I would never have gotten that many options but it was by design since I wanted to get maximum leverage from the enormous increase in volatility that we can expect from an already volatile internet sector during the week or 2 they report their 'earnings'(add also a handful of tech options like VRTS, RCMT (which I sold)) The calls would be better to buy so I could profit from a potential surge in the stock before the earnings release.. There is still risk but it limited to the amount of money I paid for the call. The only really expensive one was GNET but the others were about about half of what GNET cost. If the stock tanks I will still lose at most 35-65% of the call. It won't go down to zero and May expiration gives it an even chance to rebound a bit more. That is not great but its better than getting caught in a stock like NTBK that decides to tank 50 points and you've got $160,000 in it. And the opposite scenario is what makes it so palatable: If the stock goes up even as little as 8-10 points I stand to double my money on the option or even triple it in 1-2 days (remember we are talking about internet stocks here not GM). Every day I hold it can double with luck to a high of 300% or even 400%. (I had 2 quintuple baggers this month, a quadruple bagger, a triple bagger and a few double baggers) The only option I lost this month out of 11 was MU April Calls but did well in MU May calls. Its risky, its challenging but you can't get emotional either, you trade mechanically, set stops (no stops in options but mental stops)..and sure you have to be glued but I think for a potential gains in the middle five figures in a week lots of people would literally glue themselves to a flag pole, a skyscraper, just about anywhere.