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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Apache Indian who wrote (8057)	3/9/1998 11:06:00 AM
From: RDH	Respond to of 27307

Be careful about shorting YHOO at any price. It has gone past any rational valuation and so who knows if it will go up another 5 points or another 55 points. I think the only safe thing to do at this point is to load up on April (or later) puts with a strike price of 70 or 75. These are pretty cheap. If YHOO goes to 100 (which is probably a good chance) you don't lose so much. But if YHOO comes down to 40 or 50 (which has a decent chance of happening say one chance out of three) then you have gotten much more than a three to one return for your money. YHOO is a great company, but it just does not support it's current price (value it around 20 to 30 a share). But who wants to risk shorting this stock? Even though the premiums are high on the puts, they are worth it. If you want buy a few calls to further decrease your risk. If you play it right you can make money off the calls when YHOO hits 100 and then more money on the puts when YHOO falls down to 60. - RDH