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Politics : Ask Michael Burke

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To: Enroff who wrote (452)8/12/1996 10:38:00 AM
From: Knighty Tin   of 132070
 
Steve, What delta analysis misses is discontinous pricing. I think there is some chance that CPQ floats along until it has a disaster to report and that could lead to a gap down in price. I want more puts for that type of potential reaction, especially with my first third. There may not be an opportunity to roll down in time. However, the 50s will certainly do well in a gap down market, but the 45s give you more bang for the buck if we wake up one day and the stock is $30. And, as I see a loss by the Dec quarter, that type of pricing is not a pipe dream. Good luck, MB
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