Wind River going up, up, up! Message Board

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Technology Stocks : Wind River going up, up, up!

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To: Mark Brophy who wrote (4820)	4/9/1999 12:58:00 AM
From: Jimbo Cobb	Read Replies (1) of 10309

Just looked at the Nov 22.5's...I like 'em even better...if you buy the stock tomorrow, turn around and sell both the calls and puts (Nov. 22.5's), you can raise approx. $12.75/share, so your out-of-pocket cost is around 0.75 per share....you can pick up 5000 shares of WIND for $3750 total (assuming of course, you have the proper buying power on margin required to sell all of those naked put options)...if WIND is above $22.5 in November, your 5000 shares get called away for $22.50 per share, or $112,500 total, for a 30-to-1 return on your upfront out-of-pocket investment for 7 months....worst case is you are forced to buy another 5000 shares of WIND for $22.5 and you have a total of 10,000 shares of WIND with an average cost basis of $11 5/8 per share. Your average cost per share ends up being a little higher this way if WIND performs poorly, but your profit potential is even higher...this deal looks a little too sweet for me to pass up...how about you, Mark ???? Jimbo.

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