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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 689.10

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Jan 23 4:00 PM EST

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To: re3 who wrote (26459)	9/21/1999 8:03:00 AM
From: Benkea	Read Replies (3) of 99985

ike: "perhaps they should only be expensed when exercised, as they may never be excersized if the market tanks..." I strongly disagree. First of all, most of the options in these NON-DIVIDEND paying (IE: retaining 100% of earnings) companies are 10 year options. This means they rise in value owing wholly to the compounding affect of keeping investors' money. Why do CSCO and MSFT have so much cash? Does this sort of thing INFLUENCE dividend policy? MSFT's average strike on their 892 BILLION options is $11 15/16. That would take sooooooome tank to lower MSFT's (shareholders) cost to anything below that $10.7 bil (892 X $11.94) or the ENTIRE LAST THREE YEAR after tax profit.

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