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Technology Stocks : Mattson Technology
MTSN 3.6000.0%May 12 5:00 PM EST

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To: John Stewart who wrote (2724)3/24/2000 10:39:00 AM
From: Q.  Read Replies (1) of 3661
 
As a hedge, it makes sense, with the present 13-point spread between GSNX and MTSN.

If you've got enough buying power, going short GSNX equity is a no-cost way of essentially locking in a higher selling price on MTSN. Otherwise, writing naked calls on GSNX and possibly using the proceeds to buy calls on MTSN is a good play, albeit one that has the problem of a limited time horizon, due to options expiration. I did this earlier when the spread was a mere 4 points, and so I'm presently underwater with this tactic, due to employing it prematurely.
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