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Re: [RT] AOL movement; low option premium ?



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There is currently talk about splitting the company back up into two separate
companies again.  this could stagnate price movement until the result can be
determined on what the split value would be.  There is a similar thing going on
with LU.  It is going distribute stock to shareholders in May, the number of
shares is still undetermined, but what is value of each stock after the
distribution?  There are several ways to play each situation and ones due
diligence is called for. Ira.

"M. Simms" wrote:

> The fundamentals could not get any worse, and it's rallying in after-hours
> trading....!
> duh....
> I would say the bottom is in.....the shorts are nervous......
> This guy may not rally a lot, but selling the 20 puts here may be a good
> strat.
>
> > -----Original Message-----
> > From: Don Ewers [mailto:dbewers@xxxxxxxxxxxxx]
> > Sent: Wednesday, April 24, 2002 1:27 PM
> > To: realtraders@xxxxxxxxxxxxxxx
> > Subject: Re: [RT] AOL movement; low option premium ?
> >
> >
> > M Simms,
> > Rally off the $18.63 low started "exactly" when Mario Gabbelli
> > commented on
> > CNBC for people to buy it at $19 or below this am (I believe he owns it
> > since he has normally been bullish the cable/TV companies as value plays,
> > but the volume was off as it normally is and I only caught the
> > last part of
> > the interview). Hope he owns it before November of 1998 or he is
> > underwater.
> >
> > Although the lower low has come in as expected, this may be minor
> > wave 4 of
> > wave 5 on the 60min if "fine tuning" is allowed (keep in mine the 60min is
> > counting out just minor wave 5 of wave 5 on the daily)? Also the 60min MOB
> > level has not been reached (nor has the minor wave 5 target range with
> > starts below the MOB @16.85 on the 60min and 17.47 on the daily), so there
> > may be more downside with this one? A trade above 20.91 would indicate the
> > low "may" be it (.786 retracement minor wave 2 to my proposed minor wave 3
> > of Wave 5, at the low).  Timing marks on the MOB come in this
> > week starting
> > tomorrow.
> > don ewers
> >
> > ----- Original Message -----
> > From: M. Simms <prosys@xxxxxxxxxxxxxxxx>
> > To: RealtradersList <realtraders@xxxxxxxxxxxxxxx>
> > Sent: Wednesday, April 24, 2002 11:39 AM
> > Subject: [RT] AOL movement; low option premium ?
> >
> >
> > > I am amazed the options at 20 are not TWICE the current premium
> > given the
> > > movement of this guy ahead of earnings.....
> > > is this a buy-straddle situation ?
> > >
> > >
> > >
> > >
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> > >
> > >
> > >
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> >
> >
>
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