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Technology Stocks : Compaq

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To: Kevin Chesser who wrote (5927)9/23/1997 10:44:00 PM
From: hpeace   of 97611
 
cpq can sell the jan 80 naked put for 10.
so, they can get the shares for 70 a piece if it closes at 80 on jan 98. and since it will not. then cpq could just keep the cash on that naked put. about about selling 10000 contracts.
they'll keep 10,000,000 on that deal.
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