Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 48.32

-0.8%

Jan 15 3:59 PM EST

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To: kapkan4u who wrote (122023)	12/11/2000 10:15:06 AM
From: Joe NYC	Read Replies (1) of 186894

Kap, Assume you have 100K long shares and the current share price is $15. You can sell say 200 put $15 contracts for $2 and sell 20K shares at $15 short. The downside risk of the puts if fully covered and you still benefit from the upside on 80K of your long position. Let's see what happens at $10: You start with $200,000 from the option premium Your put position has $500,000 loss Your short has $100,000 gain The result is that you are down $200,000. Is this right? It seems that the breakeven is around $12 on the downside and 25 on the upside. (In absence of 100K long shares) Joe

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