Global Crossing - GX (formerly GBLX) Message Board

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Technology Stocks : Global Crossing - GX (formerly GBLX)

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To: JDN who wrote (3633)	12/16/1999 2:58:00 PM
From: Brent Hogenson	Read Replies (2) of 15615

You guys got to learn how to play them. Back in early October Teddy spammed the Strictly Drilling site with GBLX talk. After a little DD, I wanted in but didn't have enough free cash to buy the all the shares I wanted. So I did the following: Bought 3000 shares long @ 26.25 Wrote 20 GBLX APR 30 puts for 6 15/16 Bought 20 GBLX APR 25 calls for 6 1/8 This takes up buying power but you don't incur any margin interest. My break even for APR 2000 would be $26.75. You get the calls free if you assume the down side risk Worst case scenario was I would be long GBLX in APR 2000 at about $29.25 a share. (if GBLX was below $25) Best case scenario the puts pay for my calls and I get to buy more stock in APR for about $24.25. Needless to say Teddy is in my "cool book". FWIW - Today if you're willing to accept the downside on owning the stock Jan 2001 @ $60 you can put some $$$'s in your pocket and pick up some Jan 2001 strike price $50 calls free.

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