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


To: RON JANOWSKI who wrote (15346)1/28/1998 12:56:00 AM
From: hpeace  Read Replies (1) | Respond to of 97611
 
buy cpq to cc, sell the apr 40 put and buy the apr 30 put on smod.
12000 in margin can make you 60,000 in profit on that smod bull put spread,
I did 120 of those today.
spreads on cpq take more margin.
the credit on smdo its 12-4= 8 for the 10 point spread.
so you only need 2 dollars a share to create the spread.
that's a 21% margin with a garuantee no margin call and you still profit as it moves up. plus you can roll if it doesn't go up by april