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Technology Stocks : Compaq

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To: hpeace who wrote (11760)12/19/1997 2:01:00 AM
From: Joe NYC  Read Replies (1) of 97611
 
Steve,

sell the april 60 put for 10 ....10 contracts
buy the april 55 put for 7.......10 contracts


but april 55 put ask is 7 5/8, reducing your max gain to 2 3/8, maximum loss to 2 5/8

How about you:

sell the april 55 put for 7 1/4
buy the april 50 put for 5

Your max upside is only slightly lower at 2 1/4, downside is 2 3/4, but the probablility of positive outcome is somewhat higher.

Joe
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