Cyrix 1 Where anything goes Message Board

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Technology Stocks : Cyrix 1 Where anything goes

CYRX 8.760

-0.8%

Nov 13 3:59 PM EST

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To: Investor A who wrote (296)	3/22/1997 8:42:00 PM
From: Crossy	of 640

Fuchi, as I cannot get realtime option quotes I have to rely on 20 minutes delayed quotations from PBS, a link that steve once posted: PBS: 206.7.107.6 (sorry no name, just IP adr) However, their quotation server is down right now. Remember, buying straight PUTS is risky. The stock has to fall quite heavily in order to make profits for You (10% for at the money puts APR 97). In future I would advise You to buy BEAR SPREADs with Calls on INTC insted plus a long PUT on a slightly lower base price. You could collect a part of the current put option premiums by this !. Example: For 1 Position of Your strategy instead of BUY 1 Contract PUT APR INTC 130 @ $ 10 You could do the following: BUY 1 Contract CALL APR INTC 150 (really cheap <G>) SELL 1 CONTRACT CALL APR INTC 130 -> more than $10 right now . This position has the following characteristics: 1) If INTC stays were it is You keep the whole premium ($ 10 - price of 150 Call) 2) Loss is limited to: Difference in Basis points (150 - 130 = 20) MINUS the premium You collected (appox. $ 10 - price of $150 Call). By doing this INTC desn't need to fall by more than 10% to generate profits for You. To add some spice You could buy an additional LONG PUT 120 (is there 125 ?) from the proceedings of 1) and 2) above. This would make sense and provide leverage with much less risk. If the price of INTC drops suddenly in one day to $ 120, there will be negative air for INTC. So the INTC PUT 130 you sold for $ 10 would cost some approx. $1 now. Buy back right then, enjoy the $9 profits and let the long PUT 125 run. This is a good insurance for long positions. Works on both sides <G>. Sorry Fuchi, but right now I can't do option trading in US, since my account is in Germany. I got to get an internet-tradable account from E-Trade, PBS or anything like this in the future. However I did similar transactions on the german option exchange DTB last year with good success (on chemical company BASF and on DAIMLER the guys who make the BENZ'es). Greetings & happy investing, CROSSY Vienna/Austria

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