Winstar Comm. (WCII) Message Board

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Technology Stocks : Winstar Comm. (WCII)

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To: ANDREW TISTLE who wrote (7950)	8/26/1998 11:59:00 PM
From: Richard Dunaven	Read Replies (1) of 12468

Its late but I will show you then I'm going to bed. Sell 1000 shares at 28 equal 28k If you are 50% margined means you get 14K to cash. 14k/600 per contract = 23 contracts or 2300 shares that you control. Assuming you buy Jan 2000 35 call at 6 per contract or 600 per. At 53 the contract is worth $18 per. 18x2300 is 41400. You invested 14K to get 41400 or 295%. If you left your margin acount in tact and sold at 53 you would have 53k on the same 14K investment. 53k / 14K is 378%. You loose 12 K on the deal. Thats my point. It works great if you are not in margin but if on margin you better run the #'s!!!! Ric D.

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