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Non-Tech : OAKLEY- NYSE:OO

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To: Brian C. Lund who wrote (734)7/7/1997 7:36:00 PM
From: giles   of 1383
 
Brian,

It seems you tried to give us a helpful options technique, but I only followed about 1/2 of what you said. I see how buying put options is insurance, but I don't understand buying out of the money calls as a hedge. Are you selling your underlying stock before you buy the out of the money calls? Is that it? But then if you sell OOat 13 and the stock goes to 14 1/2 and you have options at 15 (strike price), at expiration you've lost all the way around. What am I missing?
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