Roger, might I suggest just buying the leap puts on this. Here's why: I bought 4 contracts on Dec 15th, the day before that guy said it was worth 400 pre-split. The stock went up, the calls went up dollar for dollar, but the puts are barely down. The last day of '98, the stock didn't move, and the puts went UP $10 a piece. When it was at $600 or just shy of that this past Friday, the Jan 230's (now the 76 5/8's) were at 57. I bought them at 83 when the stock was at 230. If I would have been just short, 400 shares, I would have been down much, much more. (but they probably would have been squeezed away, possibly).
When this thing finally does break, the premium for the puts will increase even more. I haven't closed my position...I think it will break before 2001 where I will make money on this one and on future puts that I buy this week.
Al C. |
