America On-Line: will it survive ...? Message Board

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Technology Stocks : America On-Line: will it survive ...?

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To: Raymond who wrote (10453)	6/26/1998 4:22:00 AM
From: Yikes	Read Replies (1) of 13594

By the way, simply buying puts is equivalent to shorting stock and buying calls at the same time, and you pay less transaction fees that way. No, it isn't. Shorting has the additional effect of having more sellers of AOL stock, which can create a downward pressure on the price. The time premium on Puts and Calls also often differ. You sure will make a lot of $ if the stock would drop to the extent that I'll lose $, but that's a big if. It depends on how much you bought your AOL shares at. If you bought in at $75, and the stock drops to $90, you are still up $15. However, I will also up $15 minus $5 I paid for the calls. Yikes

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