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Technology Stocks : How high will Microsoft fly?
MSFT 483.03+0.5%Dec 5 9:30 AM EST

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To: johnd who wrote (29241)9/7/1999 5:17:00 PM
From: t2  Read Replies (1) of 74651
 
Johnd, Why do you guys think MSFT put strike warrants are capped
at 70 and not higher like 80 or 90.


That is the way they have always done it, to the best of my knowledge.
I have wondered in the past why they don't go for higher strike prices. To me the answer seems to be that they don't want influence the stock price and cause big price moves.
Since they are consistent, it does not really matter about the strike price. However, the fact that they are willing to sell these puts confirms that they have a strong faith in year over year gains in the stock price.
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