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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (28984)	9/1/1999 4:43:00 PM
From: Exacctnt	Read Replies (1) \| Respond to of 74651

Tech2000, From Microsoft's Form 10-Q. "To enhance its stock repurchase program, Microsoft sells put warrants to independent third parties. These put warrants entitle the holders to sell shares of Microsoft common stock to the Company on certain dates at specified prices, and permit a net-share settlement at the Company's option. On March 31, 1999, 163 million warrants were outstanding. The outstanding put warrants have strike prices ranging from $59 to $65 per share and maturities ranging from 6 to 36 months." If Microsoft is currently selling puts in the open market, it would be a change from past practices. Regards

To: t2 who wrote (28984)	9/1/1999 4:44:00 PM
From: Just_Observing	Read Replies (2) \| Respond to of 74651

tech2000, thanks for setting me straight on the seller of the puts. Does MSFT have a specific day of the year that they sell their puts or do they time them based on the stock price. If you are selling puts, then you want to sell them when the stock is down. If MSFT times their sales of puts then this is a bullish indicator. When the market makers buy puts (a bearish position), they hedge their positions by buying some stock (a bullish position). So selling of 100,000 puts at 70 (representing 10 million shares) may cause stock purchases of 1 to 2 million shares. I am surprised that the stock did not behave better today.