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Non-Tech : Korn's Conservative Risk

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To: Gary Korn who wrote (1)	4/2/1999 12:05:00 AM
From: Gary Korn	of 2

Phillip Morris (MO) at 34 9/16, the close on 4/1, is a very tempting buy. The yield is 5% at this level. This also is very close to a double bottom on a 52 week chart (it briefly dipped below 35 in about May 1998). Not a "conservative" play given tobacco litigation risks, but one worthy of note. Rather than buy the stock, I might sell April 35 puts for 1 point, then flip and write May 35 covered calls (now 1 3/4) if it is assigned in 2 weeks. Net/net, assuming assignment, you buy this stock for 35 minus 1 point (the April put) and minus 1 3/4 (the May call), which equals 32 1/4, a terrific entry price. Gary Korn

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