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Technology Stocks : AOL, now I get it

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To: James F. Hopkins who wrote (397)	1/29/1997 10:01:00 AM
From: Brian Collins	of 496

>I went in AOL on the 17th 40 puts at $3..yesterday they hit >7..when I went in feb32.5 CaLLS were 10.25, ( I didn't buy them >at that time ) ------------ >Yesterday they were 3.25.. and instead of selling my puts I >bought,the in the money calls ( "do you dig it" ). Jim, I am confused, suppose by "dumb" luck, she wallows at around $34 until expiration. Granted, this is worst case scenario, but should it happen, are you not back to ground zero (including commissions)? Here, is what i think you said... bought FEB 40 PUT @ 3 / sell value is around 7 / profit =4 bought FEB 32.5 CALL@ 3.25/ sell value is 0 / profit =(3.25) unless this dog moves out of your range (40-32.5) your profit is 0.75 less commissions? In essence, you're now banking that she WILL move out of this range? What am i missing here- I am thinking that you spent all of you profit from the PUTs and now need NEED her to move out of the range to start to see that profit again? Any help is appreciated. Brian

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