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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Todd Reichardt who wrote (1082)	12/31/1997 5:25:00 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 164685

Todd, for the writer who's long the stock, it's a much better hedge than near-the-money calls. For a naked writer, it provides greater potential return if he/she is right and not much riskier than shorting the stock. For the buyer, it takes a little less capital than buying the stock on margin and the loss is limited to 23 points, but it won't lose value a fast as the near-the-money calls if the stock drops. HNY!! Bob PS: They ended up doing 720 contracts of the July 40 calls. That's $1.66 million of options.