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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: John Curtis who wrote (3075)	6/6/1998 3:32:00 PM
From: Vegas Kate	Read Replies (2) \| Respond to of 27311

I just thought of an idea: 1. buy a block of VLNC at 5 1/2 (# shares = half of goal position) 2. write the Dec 5 covered calls for 1 3/4+ 3. sell equal # of 5 strike puts (ie: the Sept 5 p is bid 11/16) If the stock is called away, you still make 60%+ annualized yield on your moolah. If VLNC tanks below 5, basis is ultimately only ~ $2 5/8 / share. What do you guys think? Are my calculations accurate? Option quotes via www.tradepbs.com