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Strategies & Market Trends : Arbitrage Plays -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (165)	2/2/2000 7:04:00 PM
From: Q.	Read Replies (1) \| Respond to of 376

In retrospect, I think it would have been better to wait closer to the merger date to make the play, in order to reduce the interest cost. It would also be better to watch the intra-day fluctuations of the discount longer than I did, to see how big they can get. I looked into whether I could build a good arbitrage play using options alone, but I found that because the acquiring company, AMAT, had higher premiums than for those of the acquired company, I couldn't devise a way of making money by writing options that had a low risk.