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

To: zebraspot who wrote (3214)	4/21/1998 2:41:00 PM
From: Doo	Read Replies (1) \| Respond to of 164684

If you like October, why not take the 100's which are double the price of your 80's, but have $8 intrinsic value (in the money), so only $2 more? Gives you alot more room, and a 50% profit if you get to 70 by expiration. If that's your target. Out of the money, cheaper may give allow you to carry a 2 lot instead of a single, but less chance for out right goose egg by expiration, IMHO.

To: zebraspot who wrote (3214)	4/21/1998 2:44:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 164684

Z, I thought that for a hedge to be a "constructive sale", one also had to give up substantially all of the upside as well as covering the downside. An overly narrow collar, e.g. writing at the money calls and buying at the money puts, would be a constructive sale, but a properly structured one, i.e. leaving some upside potential and some downside risk intact, would not be. Buying puts would not be. Do you have a link for the new rules you mentioned? Bob