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To: Eylon who wrote (943)1/11/2000 9:03:00 AM
From: Poet  Respond to of 8096
 
Eylon,

Now THAT's a great arb play. I may do a mini version later this week. Great thinking. Stick around, please.



To: Eylon who wrote (943)1/11/2000 9:07:00 AM
From: Jill  Read Replies (1) | Respond to of 8096
 
Are you allowed to sell puts in your Fido account? Can also take in premium that way.

Jill



To: Eylon who wrote (943)1/11/2000 1:44:00 PM
From: rkral  Read Replies (1) | Respond to of 8096
 
Eylon,

<Net profit is 128,000!!
this number depends only on the number of naked calls you can sell the net profit is about $1000 for naked AOL calls.>

Was pretty sure you were headed to this arbitrage. Seems too good to be true but I can't find a flaw anywhere other than the risk you mentioned ... of AOL/TWX merger not going through.

The gap is closing. Ratio of TWX to AOl common prices now about 1.3 .. was 1.27 on Monday's close.

Ron

ps: How can you write naked leap calls if Fido won't let you write naked calls? Are you expecting them to treat this as a spread?