AT&T Message Board - Msg: 957075

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Technology Stocks : AT&T

T 27.12

-0.6%

3:59 PM EST

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To: Vladimir Zelener who wrote (227)	3/9/1997 10:31:00 PM
From: Sam Miller	of 4298

At friday's closing prices you can buy T at 36 1/4 and sell the Jan 98 $55 calls for $5 effectively giving you downside protection to 31 1/4 plus significant gains if T recovers and breaks through 55. Of course if you feel that T is heading below 31 1/4 then your better off waiting to buy or if you have positions now should sell your T. I bought T at 39 1/4 and sold the Jan '98s $55 for $7.25 a couple of weeks ago lockig in a 20% return including the dividend if T makes it back to 39 1/4 by Jan 98 which I feel it will. Yes this is a concervative play in my opinion. I don't understand why you think it doesn't protect against a 2-4 month slide. Do you feel it will rebound after the 2-4 month slide and thus don't want to have the option outstanding for such a long time? If it does slide the Jan '98s should drop also then you could buy them back and hold the stock as it moves back up and do it all over again.(sorry for the long run-on sentence). Interested to get your thoughts. Thanks Sam

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