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Microcap & Penny Stocks : DESWELL - DSWLF(9.00) and DSWWF(1.25) - PE ratio - 6.5

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To: j rector who wrote (16)1/6/1998 4:49:00 PM
From: Allen Furlan  Read Replies (2) of 20
 
Your understanding is correct and more succint than my explanation. A ratio write example Stock at 27, warrants at 7 and 6 week out 30 calls at 1 1/2. I would buy 400(shares) warrants and sell 6 calls or a ratio of 3/2. This is a bullish spread with upwards expectations and a little insureance from the calls on the possible decline. I would prefer a 2/1 on 35 calls but that series wouldnt be open until the stock sustains a price value above 30.
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