AMEX TO TRADE OPTIONS ON CD RADIO INC
NEW YORK, Nov. 26 /PRNewswire/ -- The American Stock Exchange today
announced it will trade options on the over-the-counter stock of CD
Radio Inc. (stock/option symbol: CDRD/QXO) beginning Monday, December
1.
CD Radio Inc., based in Washington, DC, holds one of two FCC national
satellite radio broadcast licenses. The Company is building a
satellite-to- car 50 channel radio system for broadcast throughout the
United States.
QXO will open with strike prices of 17 1/2, 20 and 22 1/2, with
position limits of 4,500 contracts. Initial expiration months will be
December of 1997 and January, March and June of 1998. The specialist
unit for the new options will be GHM, Inc.
The Amex trades options on 29 broad-based and sector indexes and 868
stocks -- including 382 over-the-counter stocks and 86 American
Depositary Receipts (ADR's) -- and 97 Long-term Equity AnticiPation
Securities. (LEAPS.). In addition, the Amex is a leader in listing
warrants on foreign currencies and indexes as well as hybrid
instruments and other structured products.
Visit Amex. web site located at amex.com
SOURCE American Stock Exchange
-0- 11/26/97 /CONTACT: Stephan
Pechdimaldji of American Stock Exchange, 212-306-1489, or
spechdim@amex.com/
CO: American Stock Exchange; CD Radio Inc. ST: New York, District
of Columbia IN: SU:
This has become such a common practice now, to begin options trading after a secondary, or after a lockup period ends....It provides ways for restricted stock to be sold with various options strategies to lock up profits......should be easier now to go short CDRD since one can now buy puts and not worry about finding shares to short....that will also relieve some of the upside pressure from the large short position. There will now be ways for the shorts to limit losses and cover positions without actually "buying " stock........happy thanksgiving to all.......;^) |
