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Technology Stocks : PALM - The rebirth of Palm Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Souze who wrote (1149)	8/9/2000 10:57:55 AM
From: LLCF	Read Replies (1) \| Respond to of 6784

<OK, now I follow you. But they must have paid a ton for those puts, in addition to buying the stock. I assume they are August puts?> yes, good observation... they bought put and bought stock for about the 'strike price' or $70! They're paying interest on that [and seller, MM's, receive it] until they exercise their puts. So they pay like 70 1/16 to the market makers for the package and 'give away' the 1/16 plus a little interest. And yes they are August puts. Next lesson, the vol spread :). DAK