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jenna

12/15/03 7:44 PM

#19929 RE: jenna #19928

SHFL #3 volume leader in %increase in volume Thursday/Friday it was in the top 10. EARNINGS PLAYS outperform the market, but also for downside (i.e. AZO, ADBE and upside SHFL, SNPS) I think ADBE's huge pullback today was still connected with yesterday's downgrade after the earnings report. In a perfect world we would have bought more puts at the open today, but just too much was going on. The reason we like the straddle or strangle is 85% of the time we do have a huge move in one direction which makes the position (entire position) highly profitable.

Low volume doesn't matter because these companies have huge volume increases only rarely does stock stagnate and neither direction moves enough to make the straddle worthwhile.