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Gold/Mining/Energy : CGI Group (GIB.A) - -- Ignore unavailable to you. Want to Upgrade?

To: Bruno Riccio who wrote (455)	6/7/1998 6:28:00 PM
From: Sal Pugliese	Read Replies (2) \| Respond to of 1673

Bruno, since you are accumulating on dips and CGI has dropped $3.60 this week (about 12%), I assume you are in buying mode. Here is a way for you to buy them at less cost assuming you think $26.50 is cheap. Write a July $27 Put. According to Friday's bid/ask it was $2.25/$2.50. You got to be careful because you are liable to pay $27 for the shares upto the 3rd Friday of July. Your cost, if exercised by the person who bought it, would be $27-2.25= $24.75. That 6.6% less than Friday's close. But, if someone is exercising that option, that means the stock is less than $27....But, as long as it's above $24.75 you are making money... Here is the beauty, if that option is not exercised (meaning the stock is about $27) you make $2.25 of pure profit (less fees).. Take care...and good investing...Sal