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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Snake who wrote (2575)	4/9/1998 10:56:00 PM
From: ccryder	Respond to of 10852

Considering the significant upside potential, selling the stock and buying calls, say slightly more calls than underlying stocks that you sold, might make sense. You limit your downside, can maintain your upside potential, and have cash available to buy more calls at a lower price if the bottom falls out. The drop in GSTRF vs rise in LOR the last two weeks can be explained to some extent by the premium that can be placed on LOR because it is profitable. A lot of funds and institutions can buy LOR but not GSTRF.

To: Snake who wrote (2575)	4/9/1998 11:45:00 PM
From: zebraspot	Read Replies (1) \| Respond to of 10852

Two words of warning on hedging with puts, etc: "Constructive Sale". Clinton pretty much ruined the use of puts and shorting-against-the- box as hedging strategies last year. I think you have a way around it: sell the puts before Jan.31st of the coming year and go naked in the long again for at least 60 days in order to get around the otherwise taxable event. Good luck figuring out the vague tax rules - not even sure they've been fully written yet. // LOR annual report is pretty impressive, eh?