How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 506.34

-0.8%

3:53 PM EST

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To: DavidD who wrote (12598)	11/25/1998 11:28:00 AM
From: nihil	Read Replies (1) of 74651

RE: naked options Didn't mean to be patronizing, but being expert in finance you doubtless recognize that Microsoft has the shortest possible position in MSFT -- having sold (or given away) ~2.5 billion shares. As a result, when it sells 75 million puts they are wildly over covered. In addition, they are covered by the net-share option, which can prevent an uncomfortable cash outflow. Thus there is no possibility that Microsoft would default (like you or I might), because MSFT has "monetized" its stock by the net-share option.

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