Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (25277)	12/15/1997 10:20:00 AM
From: Kathleen capps	Read Replies (1) \| Respond to of 53903

SB -- I can't get CNBC. I'm curious if they covered the downgrade in David Faber's segment. Kathleen PS -- Wall Street doesn't seem to show any fear of your downgrades yet -- you need to turn up the juice.

To: Skeeter Bug who wrote (25277)	12/15/1997 10:40:00 AM
From: Patrick Koehler	Read Replies (3) \| Respond to of 53903

Skeeter, you are going to make me pull my remaining hair out, regarding options!! Don't you and others ever do speadsheet analysis of the various options, and returns at different prices? The first question to determine what option to buy, is what is your target price of MU by Friday? As an example, let's assume the price of MU is 22.5, the Dec 22.5 option MUXX) is 1.5, and the Dec 25 put (MUXE) is 3. Now assume you hold the options until Friday, when there is no premium. What is the return at MU between 25 and 17? Here are the profit/loss at those numbers: MU MUXE MUXX 25.0 -100% -100% 24.5 -83% -100% 24.0 -67% -100% 23.5 -50% -100% 23.0 -33% -100% 22.5 -17% -100% 22.0 0% -67% 21.5 17% -33% 21.0 33% 0% 20.5 50% 33% 20.0 67% 67% 19.5 83% 100% 19.0 100% 133% 18.5 117% 167% 18.0 133% 200% 17.5 150% 233% 17.0 167% 267% Consider the risk-reward of the trade. The stock must trade below 20 for the MUXX to be a higher return. Anything above that, MUXE is better, and anything between 22.5 and 25 is a 100% loss on the MUXX, whereas, you still have some money with the MUXE to play another day. Just food for thought. Patrick