Cyrix 1 Where anything goes Message Board

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Technology Stocks : Cyrix 1 Where anything goes

CYRX 8.760

-0.8%

3:59 PM EST

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To: Investor A who wrote (323)	4/5/1997 3:29:00 PM
From: Crossy	of 640

Fuchi, again as I said earlier You can try to collect the option premium for Cyrix. First BUY a cheap CYRIX put 15 or put 12.5 (should cost 1/8). Then You SELL a cyrix put 17,5 ot 20 (put 20 for 3 or $4) for each of the cheap puts you bought first. This is called a bull spread. You don't pay option premium for the combined position. If Cyrix just stayed where it is now, You should still earn $2 for the combined position. If CYRX advanced to $20 and over, You get $4 per lot. If You got the Cyrix 15 put, then maximum loss is $1 if CYRX ends at $15 or less. Don't buy options. Either sell them plain, or buy a cheap one and sell the expensive one. You don't have to guess so much when doing this. The stock just has to HOLD or to move in Your direction A LITTLE (compared to very much if you simply buy a call or a put) Greetings Crossy Summing up: Buy 1 lot (put 15 or put 12) + sell 1 lot (put 17,5 or put 20).

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