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Strategies & Market Trends : Tech Stock Options

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To: j g cordes who wrote (27657)11/1/1997 8:48:00 PM
From: Patrick Slevin  Read Replies (1) of 58727
 
Be that as it may.....

....companies regularly announce stock buybacks. These buybacks are almost always for a set dollar amount, not a share number amount.

It is to the stockholders advantage that the company earns money writing puts...it is further to the holder's advantage that the company does not overpay for the stock.

In an uptrending market....in a solid sector....in a stock whose principals believe that the stock is undervalued...this does not seem like a bad deal to me.

Personally, I would not sell a put on a broken down Edsel in this market, but corporations selling puts is a re-affirmation that the management believes the stock is a steal.

This is, obviously, an insurmountable disagreement in market theory between us....I hope it is not taken personally by you.
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