How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 508.82

+0.6%

Nov 11 3:59 PM EST

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To: KeepItSimple who wrote (57031)	4/2/2001 7:37:43 PM
From: The Duke of URL©	Read Replies (2) of 74651

Perhaps you might wish to keep it even more simple. <MSFT is using its huge 20 billion cash pile to prop up its stock. > If MSFT is selling puts they are receiving money, not spending money. Merely selling a put has no immediate effect on the stock price. IF msft is selling puts because it "knows" the stock is going up, well, then they will just have a bigger cash hoard if the stock goes up. If the stock goes down, then they will be just supporting it at a lower level when the stock is "put" to them leaving more to be divided by us remaining "bagholders". Again, selling a put, does not immediately, "buy the stock". I guess my failure to understand this concept of sophisticated finance is why I have never been able to be a rock and roll day trader like some.

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