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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jan Crawley who wrote (39398)	12/27/2000 3:59:21 PM
From: Louis V. Lambrecht	Read Replies (4) \| Respond to of 42787

Jan - very strange those hidden puts. still there tho. cboe.com Look at the Jan 120 puts. Now assume that you are bearish MSFT and hat you need some cash: (rough calculation) sell 10k Jan 120 puts, $7210010k buy 20k Jan 80 puts, $3310020k Your CREDIT $610010k Break-even = MSFT @ $40. For any print of MSFT at $40 or lower, you start making money and you still have $6mil to play with until expiration or unwinding your position. With MSFT around $35 Buy 10k Jan 120, then at $85 Sell 20k Jan 80, then at $45 Your DEBIT $510010k Your profit $(6-5)10010k= $1mil.