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Rambus Inc. Message Board

  • rb11509 rb11509 Mar 4, 2006 1:29 PM Flag

    Barron's affect

    This should play no role whatsoever in the price on Monday. Barron's was just pointing out what option players are doing.

    There was not anything about Barron's impression of if the stock was overvalued or undervalued. If they said it was worth 50, it would have gained two or three dollars on Monday. If they said it was worth 20, it would have lost two or three dollars on Monday.

    What will cause the stock to move this week will be potential talks of settlement or anything having to do with Rmbs winning or losing.

    We all saw what happened with Rimm's stock, and they actually were on the losing side and they jumped 15 dollars, imagine what happens to the winning side.

    Smart play on this is to protect wins by buying puts because no matter how much the put cost, if rmbs wins and you lose the put, the win will give you five times the amount you would have lost on the put, and if rmbs somehow grabs defeat from the jaws of victory, the puts will triple minimum.

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    • "This should play no role whatsoever in the price on Monday. Barron's was just pointing out what option players are doing."


      they were pointing out that option player are betting heavy and are paying a premium that this stocks strong potential will possible reach 90 bucks .
      but we will have to wait and see .

    • I see that the impression that will be lef on individuals reading the article is that call options at two and a half times the current price are trading for sizable premiums 1 to 2 years out...

      This will have an effect in that people will be interested in purchasing a stock that has such a large implied potential, and a covered call play that helps to reduce the cost basis...

      That said I expect to see significantly higher volume on Monday with teh typical price fluctuations associated with a barrons bounce... Jump at the open pull back @ 11. The close should be a bit higher but nothing that would catch your breath.

      Over the next few weeks the price will move around but long term the drivers become the news...

 
RMBS
13.09-0.04(-0.30%)Jul 31 4:00 PMEDT