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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: SteveG who wrote (2355)	12/5/1997 12:17:00 AM
From: SteveG	Respond to of 6180

<A> Options Report: Combination Trade Hedges Texas Instruments By Steven M. Sears NEW YORK (Dow Jones)--A Texas Instruments shareholder appears to have decided Thursday to limit the effects of dramatic price swings on what appears to be a very sizeable stock position. In a trade that one source said acts like a collar, a Texas Instruments shareholder sold some 7,000 January 50 calls and bought some 6,000 January 40 puts. The trade limits the amount of money the shareholder can make on the stock and also limits the amount of money that can be lost. Texas Instrument's stock price has fallen from a 52-week high of 71 1/4 in mid-October to its current price of 45 5/16. In a best case scenario, the stock price stays between the two strike prices and the shareholder pockets the difference between the premium he received from selling the calls and buying the puts. The January 50 call is down 3/4 at 1 7/8 on volume of 7,388 contracts, compared with open interest of 5,782 contracts. The January 40 put is up 1/8 at 1 1/4 on volume of 6,412 contracts, compared with open interest of 3,024 contracts.