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Technology Stocks : CMGI What is the latest news on this stock?
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To: Mark Peterson CPA who wrote (8109)5/12/1999 2:01:00 AM
From: PAL  Read Replies (2) of 19700
 
Mark,

Sometimes there are differences in the B/A for the option. This morning I sold, Jan01/220 puts at 91 5/8. I talked to a life broker, and asked for the quote: 89+X90+. I said the real time quote by your broker showed 90 5/8 X 91 3/8. She said the quote I saw was on the CBOE. I asked her to route it through CBOE and to sell at 90 5/8 (limit order even at the bid, did not want any surprises). I got a telephone computer voice generated confirmation about 1 hour later: sold at 91 5/8!! Of course I did not call them back. From this experience, I deduce that we have to ask the broker to give quotes from various exchanges.

This morning action is the second leg of my trilogy. In summary: bought CMGI at 218, sold Jan01/220 put at 91 5/8. The third leg will happen when there is a runup on CMGI which will allow me to sell covered call Jan01/300 at least 127+. Cost basis would then be zero. If called I pocket $ 300/share net or have double the shares at 110 come Jan01. We will know a year and a half how this will turns out. If called, the stock gain will be l/t. The call is part of the selling price. The puts is s/t gain taxed as ordinary income.

Best regards and successful investing,

Paul

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