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Technology Stocks : VISIO Corp (VSIO): Big ISO 9000 Play
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To: Captain Jack who wrote (500)12/25/1999 3:13:00 AM
From: TobagoJack  Read Replies (2) of 522
 
I normally hang out on the Softbank thread and we even had a short discussion on Visio/MSFT there (we talk about many shares besides SFTBF).

VSIO shares has consistently traded at substantial discount to 0.45 of MSFT shares even though the deal should reach closure in January, and VSIO puts assumes implicitly that VSIO will still be around in June, with the June Put 35 now selling for $3/share and June Put 45 (obligation to buy VSIO at $45/share between now and June 2000) selling for $7/share.

I had been selling the June Put 35 back in November (when VSIO was at $34) and am now selling the June Put 45 last week. On order size of 10 contracts or less (each contract equivalent to 100 shares), the market maker has to honor his bid/ask price. I account for about 20% of the Put 35 and 100% of the Put 45 volume outstanding. Taking money from babes, unless the market turns against me before deal closure in January, or no deal closure at all.

I figure that VSIO is not a large or an important standalone company for FTC to block. And a market collapse before March is not likely. We will see. I did buy some VSIO June Put 30 to limit my downside in the event VSIO slides below $30/share.

In theory, VSIO shares should trade at around $ 52.84 minus some risk premium, and VSIO June Puts (obligation to buy) should trade at around the same level as VSIO January Puts (as Puts will automatically terminate upon closure of buyout).
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