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To: SAJ

No, not a trader. But options traders need to have an idea of direction. I don’t know how you can come up with any rational idea which way it will go. For one thing the Federal Gov still will own a big block. There are a million ways for them to manipulate the price from selling from their hoard to high officials talking the stock up or down.

I think this one is like playing roulette in an unlicensed casino.


48 posted on 11/16/2010 6:05:07 AM PST by DManA
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To: DManA
Actually, options can be VERY profitable to trade w/o any idea at all of direction. The thing to watch is the implied volatility of the options.

If, as seems likely, this IPO attracts a lot of interest (thank you, Mr. Barnum!), the IVs of the oppies will equally likely be skewed higher for at least a while. This will present opportunities in both calendar spreads and diagonals, and to some extent ratio-spreads and ratio-writes.

51 posted on 11/16/2010 7:43:19 AM PST by SAJ (Zerobama -- a phony and a prick, therefore a dildo.)
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