Manugistics, Inc. (MANU) Message Board

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Technology Stocks : Manugistics, Inc. (MANU)

MANU 15.86

-1.0%

Dec 26 9:30 AM EST

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To: Mark Peterson CPA who wrote (1183)	1/25/1999 2:45:00 PM
From: Tom Smith	Read Replies (2) of 1670

Mark, Just by the stock and sell the Feb 10 calls against it. That won't make you rich at exponential rates, but who can argue with the rate of return offered by this particular option strategy? Effectively a 10% or greater ROI for 30 days. Annualized, well, I'm sure you can do the math. Who can argue with it??? Lots of people. You are making a BIG assumption that the stock price won't decline further in the next 30 days. Yes, you can buy the stock, sell the calls and collect the 10% premium. But if the stock is trading at $8.75/share or less in 30 days (not an unlikely possibility), your ROI is negative. Tom

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