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Technology Stocks : Semi Equipment Analysis

SOXX 301.15

-1.2%

Dec 31 4:00 PM EST

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To: Proud_Infidel who wrote (17589)	8/3/2004 11:31:19 PM
From: Gottfried	Read Replies (3) of 95656

Brian and all, OT *** a money making idea from ihub... MSFT- BUY/write. Buy 1000 shares of the stock at 28.05, subtract the $3.00 special dividend per share, subtract the 8.10 premium on the Jan05' 20.00 calls (10), subtract the 16 cents for the next two quarterly dividends- for a net cost basis of 16.79. If called away at $20, which will more than likely happen, your per share profit is $3.21 per share. Subtract commissions and you have a 18.2% profit for 170 days. Fairly secure and a good return in a sideways market. MSFT has to trade below $20 to eat into you profits. Worse case you own MSFT at 16.79 and had made no gain the last 6 months investorshub.com except, I read somewhere that MSFT options would be adjusted after the special dividend. The $20 call becomes a $17 call, thus eliminating almost all profit. Can anyone verify or dispel that? Gottfried

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