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Old 10-31-2007, 10:34 AM
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Re: Options Trades Today

One thing to be careful of when buying options for a swing play is the Implied Volatility. Note on Verisign the IV is at it's yearly high right now.



They release earnings tomorrow and after that the IV will drop like a stone...always does. This is when you *could* start to lose all the time premium that's built into this close-to-expiry option.

ANR was a good buy volatility wise...but price action wise, for me...it's a little high. Could it keep going up? Absolutely it could! I'm always hesistant to buy new highs without a pullback. Buying on a gently increasing volume-down bar with a WRB may not be my style, but I'm sure it works for some.

Just a couple things I noticed with those plays.

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