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Technology Stocks : Zitel-ZITL What's Happening

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To: Mondoman who wrote (2034)12/26/1996 4:51:00 PM
From: Philip H. Lee   of 18263
 
>> If I absolutely need to hedge I'll buy calls. Should Zitel cross 55 a share I'll buy enough contracts at 3 and 6 month strikes to cover 110% of my position (this should answer your question of the 200 point rise scenario).<<

What strike prices do you have in mind for the calls you're going to buy? If you hedge 110% of your position, you'll effectively lock in part of your short losses.

Philip
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