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Strategies & Market Trends : Value Investing

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To: Freedom Fighter who wrote (6020)2/11/1999 10:19:00 AM
From: Don Earl  Read Replies (1) of 78531
 
Hi Wayne,

I'm not sure if you are into math or calculating risk/reward factors, but your strategy is absurd.

Stock plus puts = $27 or $1.85 gain in four months, IF the deal goes through. That comes to a little less than a 7% return. If the puts expire worthless at $25 the loss comes to 8%. You should be able to get around 5% on a six month FDIC insured CD WITH NO RISK AT ALL.

Regards,

Don
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