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Technology Stocks : CYRIX / NSM
NSM 18.270.0%Jul 31 5:00 PM EST
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To: Rich Dondo who wrote (28691)8/5/1998 8:29:00 PM
From: Dale J.  Read Replies (1) of 33344
 
sell the puts, take the premie and buy calls with it....this is infinite return , if you are correct,
if not you end up with a dog and a great tax refund. well 3k deduction anyway..

Rich, I'll just assume you are joking. That is not infinite return, unless you are infinitely correct. Selling Puts is a long position. Buying Calls is a long position. You would have a heck of a time making money on NSM with those long positions. The stock has been decimated.

Now I suppose you could look at a chart of NSM and specify certain small time frames when your approach would have worked, but for the most part when a stock drops from 42 to 11. You won't make money selling PUTS and Buying Calls.

PS: I have no position in NSM and I wouldn't go short at this point. But good luck to the longs, they have had enough.

Dale
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