INPR - Inprise to Borland (BORL) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : INPR - Inprise to Borland (BORL)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Alski who wrote (534)	7/19/1998 5:09:00 AM
From: ED_L	Read Replies (1) of 5102

How about this scenario, they bought 100K at cost of 780K (full 6 month carrying cost of money equates to ~ 22K). Then sold naked Jan 5s early on FRI when stock was above 8 and got ~35K. Used the 35K to buy 2000 Jan 7.5s for ~23K. The 100K shares protects the 1000 5s. After paying for the 2000 7.5s they have 12K left over to put towards the cost of money for the 100K shares. Net result is they end up with 2000 Jan 7.5 calls for ~10K which is less than what you would pay if purchased directly. If they close out with INPR being above 8.5 before Jan then carrying cost are proportionally less and profits even greater.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next