Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (67062)	9/1/1999 10:17:00 AM
From: Knighty Tin	Read Replies (3) \| Respond to of 132070

Skeets, He cannot be short the stock as the broker does not have access to the collateral. So, until he exercizes the co. stock options, he would be selling naked, which would require beaucoup collateral. Ditto for covered call writing. He can buy deep in the money Leap puts at very low time premiums, assuming his stock has them. Or, he can buy deep in the money Leap puts on a close competitor, which is obviously less of a perfect profit lock-in. Merrill Lynch always gives the best short sale rebates. With $350,000, he should be able to get about 80% of money market rate on short sales. But I don't think they will do them against co. options. Also, he has to look closely at the job politics of either shorting the stock or buying puts. He will probably have to disclose the position and that could cause some heat.