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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Cy who wrote (49350)	9/14/2000 8:33:39 PM
From: The Duke of URL©	Respond to of 74651

<I wonder if MSFT is selling naked put to buy back the stock... Of course, if MSFT goes all the way to $120 in January, it just pockets the money> Excuse me for sounding like George Bush senior in front of a bar code machine, but what a great answer. Take the 130's, msqmf. The company would get $65 in cash today. (maybe tax free)and if the stock drops below 130 in january, they buy it for 130 less 65 or 65 additional bucks. If the stock goes to over 130, the company pockets the money, if they have to buy it, it supports the stock at 130. The only way they "lose" is if the stock drops below 60? or so. But they would "lose" that if they bought the stock back today and it later dropped to 60 or so?? Is this a correct analysis??