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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: Sampat Saraf who wrote (54188)10/16/2001 9:59:38 PM
From: StanX Long  Respond to of 70976
 
Thanks for your insight.

Stan



To: Sampat Saraf who wrote (54188)10/16/2001 10:45:22 PM
From: StanX Long  Read Replies (3) | Respond to of 70976
 
Sampat, thanks.

After by first response, I went back to your post and
cleaned it up with excel. SI's cut and paste is bad.

Option Share 3-Jan Option Share
Cost Cost Price Return Return

47.4 33.6 35 -100.00% 4.17%
47.4 33.6 45 -67.57% 33.93%
47.4 33.6 55 102.70% 63.69%
47.4 33.6 65 237.84% 93.45%
47.4 33.6 75 372.97% 123.21%
47.4 33.6 85 508.11% 152.98%
47.4 33.6 95 643.24% 182.74%

After looking at the excel version, I see something of concern.

So even if the stock went to $55.00 than the option return
of 102.70% and the stock return of 63.69%, at this point,
not a real good risk to reward.

It is not until, $75.00 with a return of 372.97% while the
stock is 123.21%, now there is a big difference.

So unless it goes to $75.00 owning the stock has less risk
for the reward.

Thanks for your thoughts.

Stan