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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: Howard C. who wrote (10545)	9/24/1999 4:52:00 PM
From: David H. Zimmer	Respond to of 20297

Both the purchase of a call and the short of a put suggests that the person believes the stock is going higher. That is the only similarity. The risk in buying a call is limited to the premium paid. The risk in shorting a put is the strike price of the put, less the premium paid. In other words, if I shorted a 35 put on CKFR and received $3 in premium, my maximum risk would be $32. In addition, the feature that attracts me to options, time, is on different sides of the fence. When buying a call, time works against you. When selling a put, time works in your favor. If you are inexperienced, make an assumption that you shorted a 35 October put for CKFR today at $1 3/4 (Had the order in all day and never got filled.) Watch what happens to this over the next few weeks and check back in.