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Strategies & Market Trends : Advanced Option Strategies

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To: Greg Higgins who wrote (3)1/28/1998 9:15:00 PM
From: R. Gordon  Read Replies (1) of 355
 
Greg,

>>>The CPQ Jan 99 30 Leaps with the stock at 30, show Call bid 6 1/4, Put bid 4 7/8. This is a net profit of 1 3/8 on a cash investment of $15 for a risk free return of 9% before commissions and margin interest<<<

Check it out. This 9% risk free return has now been cut in half by a 1/4 point drop in the stock. Like I said, these deals do not hang around long. The jan99 30 call is now listed at 5 5/8 and 6, the ask for the put is now listed at 5 and 5 1/8. I don't know why there are two sets of numbers. It has changed from $1.375 to $.65 .

Richard
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