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Technology Stocks : Ampex Corporation (AEXCA)
AMPX 10.12-1.8%Nov 21 9:30 AM EST

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To: Lawrence Burg who wrote (7053)4/13/1999 6:44:00 PM
From: Zainul Hamza  Read Replies (3) of 17679
 
Lawrence,

Thanks for the info.

The put options works like this:

You are selling someone "the right to sell a stock (VRSN) at a
certain price up to a certain time frame". For this right you
sre paid a premium which is very good in case of VRSN.
The nice part is that I keep getting the premiums and the stock
has never dropped below the strike price.

If you want to buy a stock but you think it has had a big run up
or if you do not have enough capital at the present time then
you should look into selling puts.

The capital requirement is 25% of the amount that you would need
in case the stock drops and you have to buy it.

Hope this helps
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