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Technology Stocks : AOL, now I get it

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To: James F. Hopkins who wrote (402)	1/30/1997 12:05:00 AM
From: Brian Collins	of 496

Jim, Thanks for the quick reply. One more thing... > the puts = 4.75 <income> > the call = 5.625 <income> > total= 10.375 <total income> > sub ins (3.25) <expense> > bal = 7.125 which is just a little more than I would have > got the other day, Did you forget to include the expense of the original puts at $3? which would reduce that current 'snapshot in time' profit to 4.125 (=4.75 + 5.625 - 3.25 - 3). Also, are you looking at the option price or the bid and ask? Sometimes bid or ask can differ from posted price by 1/2 or more. The only reason that I ask is because I am somewhat new to options and am looking for reliable methods to limit my risk. When you mention locking in put profits with call purchases after the price drops, i am intrigued-however I cannot find any "affordable" calls that do not eat up my initial gain from the puts. thanks again, Brian

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