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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits" -- Ignore unavailable to you. Want to Upgrade?

To: Terry Maynard who wrote (237)	6/7/1998 7:24:00 PM
From: Stewart Whitman	Respond to of 1185

Terry, The other thing I was thinking for SAMC - which is just simple arbitrage - buy say 1000 shares @ $29, and 4 x 22.5 puts @ $3.75. Tender all the shares. Assuming 59% (say 600 shares between friends) are accepted, then, use the puts to sell remaining 400 shares. Paid: Shares: $29,000 (1,000$29.00) Puts: $1,500 ( 400 $3.75) --------------- Total: $30,500 Recv: Tender: $24,000 (600$40.00) Opt. Ex: $9,000 (400$22.50) --------------- Total: $33,000 That seems to be the worst case (assuming the tender goes through, of course) and gives a little more than 8%. Of course, you might get lucky and sell more shares at $40 if more people wanted to keep shares (that's just upside). It looks like, the put options are priced like they expect the resulting price to be around $18-$19 and not $13. Stew