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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (59764)	10/1/2000 1:25:05 AM
From: Jim Willie CB	Respond to of 122087

then the sold MSFT put warrants benefit Microsoft only if MSFT rises in share price slower growth, lower earnings would send stock price sliding that would hurt such put warrants, further exacerbating any poor earnings report for years, MS has been shorting puts after talking down eps estimates then they blow thru with better than expected earnings this has resulted in hefty amplified profits each quarter Goldman Sachs has been an unwilling participant for years they have felt coerced to cooperate with the giant if MS disappoints, the sold put warrants will worsen the earnings announcement what am I missing here? unless MSFT shares rise, sold puts are losing propositions thanks / Jim

To: RockyBalboa who wrote (59764)	10/1/2000 4:59:30 PM
From: UnBelievable	Read Replies (1) \| Respond to of 122087

For Stockholders This Is True - But From the Short Term Perspective of Financial Statements, I Think There Is A Significant Difference I only stated that the puts have very specific optional noncash settlement rights; that does not change their character, being puts (from a market risk perspective). MSFT can pay for the puts with more shares ie if stock is down from 100 to 50 they can satisfy the put by delivering two shares of stock for each option.