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


To: johnd who wrote (29241)9/7/1999 4:16:00 PM
From: Uncle Frank  Respond to of 74651
 
>> Reason I sold are gut feel from several risks

Nothing wrong with being in cash, john, but didn't
you lose big the last time you tried to time msft?

Imagine if the doj suit gets settled while you are
on the sidelines? That's what they call opportunity
loss.

Fwiw*, I'd keep at least 50% on the table to guard
against something good happening <as it usually does
with Mr. Softee>.

uf

* = usually nothing <g>



To: johnd who wrote (29241)9/7/1999 4:45:00 PM
From: Stormweaver  Respond to of 74651
 
OT: found a good brief explanation of "tracking stocks":

fool.com



To: johnd who wrote (29241)9/7/1999 5:17:00 PM
From: t2  Read Replies (1) | Respond to of 74651
 
Johnd, Why do you guys think MSFT put strike warrants are capped
at 70 and not higher like 80 or 90.


That is the way they have always done it, to the best of my knowledge.
I have wondered in the past why they don't go for higher strike prices. To me the answer seems to be that they don't want influence the stock price and cause big price moves.
Since they are consistent, it does not really matter about the strike price. However, the fact that they are willing to sell these puts confirms that they have a strong faith in year over year gains in the stock price.