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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST

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To: Peter Yang who wrote (5156)12/29/1997 3:02:00 PM
From: yard_man  Read Replies (2) of 27307
 
Good analysis except: When It drops below 60.
You mean IF. Would this be called a covered short? Sale of the put provides limited protection. In addition you might consider an "inexpensive" near term call to protect with such a volatile stock. You could buy these near-term calls close to earnings releases.

Actually been thinking of doing something similar with just the options on AOL. Sell calls, buy puts for same exp close to same strike. Use the credit generated to buy near term protective OTM calls while waiting for the stock to tank. This approach provides added leverage, and increased, but limited risk.
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