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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?


To: Skipper who wrote (10223)12/5/1997 11:55:00 AM
From: hpeace  Respond to of 97611
 
skipper if you buy a put then you are protected from disaster if it crashes.
then if you sell the naked put at 85 . if cpq is 85 or above in april then I keep all the money minus what I paid for the prot. put.
plus, if I sold the naked put for 22 I can buy it back for 10 along the way as ...like after they announce earnings it is likely going to be 80 so I buy it back for 7.

Your margin on that is $20,000 per 10 contracts..????