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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Benkea who wrote (17961)	6/20/1999 12:04:00 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 99985

Benkea, have you tried to work with convertible debt in DOT.COM companies. For example go long AMZN convertible at 86.5, short AMZN at 111 and write the JUL 110 put for $11 Conversion rate for full hedge is one bond for 5 shares. If the stock stays the same or moves up 10% you collect the full put premium. You are fully hedged fore moves above 15%. The only risk is if AMZN has a drop of over 15% you need to hedge yourself with the July 90 put which will eat $3.5 from profits. BWDIK Haim