Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: VBroady who wrote (40014)	7/22/2000 8:55:47 AM
From: im a survivor	Respond to of 41369

ARBITRAGE Ever heard of it? The day the tw deal went thru was the day you knew aol would be sideways for awhile. Howewver 2 scenarios will play out. The deal passes and aol becomes the internet/media giant of the world. The deal fails. Aol remains the internet giant it always was. Either way, when the deal either passes or doesnt, AOL gets on the move again. There will be many people very sorry they did not buy in at such low levels. Me personally, I didnt want too much dead money while this goes thru arbitrage, so I converted my remaining long shares into 2003 leaps. The premium was awesome. When aol was trading at $52-$53, I picked up a bunch of 2003 $40 leaps for only $21 - $23. I free'd up alot of cash, yet now control more shares. Does anybody have any doubt that aol will be a steal in January 2003 at $40??? Add in the premium and the break even point is about $62 in 2.5 years. Personally, I think this is a great way to play aol. My attitude was this...I love aol, want to remain in aol, but didnt want alot of dead money for this year. I know once aol and tw pass or dont pass, AOL moves back over $100 in the short term. I said short term. Which means, hopefully we are at $100, with 2 years left to go on the leaps, and then those babies can shoot to the moon. Remember, ITM Leaps, will pretty much move dollar for dollar with the stock. Anyway, lets check back in a year and see where aol is then. Keith