Safeguard Scientifics SFE Message Board

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Technology Stocks : Safeguard Scientifics SFE

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To: michael r potter who wrote (3056)	6/9/1999 12:00:00 PM
From: Tom Bunge	of 4467

Thanks for your comments yesterday, Mike. One simple question, if you do not mind. Those 16,000 June puts expiring this coming Friday, shouldn't one assume that as they are being liquidated on or before Friday (most likely after today) ... there will be an equivalent 1,600,000 shares dropped on the market; in which case the stock may lose a bit more than 3 points. I was looking at the cost of protecting a long SFE position by July puts. The premium on the "on the money" 70 puts are 8.50/9.00 with the stock @69.50; isn't that hawfully expensive? Doesn't it say something rather strong about the immediate future? Meanwhile, the cost of buying a 115 put (aside from the instrinsic) remains at 1/2 point(plus relatively nominal cost of financing). May I ask what you think and what instrument you would pick to protect a long position, at this particular juncture?

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