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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: coolhandluke who wrote (17809)	7/11/1998 4:00:00 PM
From: paulmcg0	Respond to of 50264

SIGH I suppose that I should clarify about the YHOO situation. I never bought any shares of Yahoo! What I did was buy option puts on the CBOE (Chicago Board Options Exchange -- cboe.com ) and less than 1000 dollars was involved. Puts are a kind of derivative -- essentially I was doing the same thing as shorting YHOO without as much financial risk. A put gives you the right to sell a share at a fixed price in the future. You hope that the stock price will drop below the strike price at expiration. Yahoo is going down, but the puts expire next Friday, and I don't think that Yahoo will go down enough to make any money off of the puts. So, yes, you could say that I was essentially trying to short Yahoo. I wish I could have done a real short on DGIV, but by the time I found out about it, the stock price had already dropped below 5 dollars a share. Almost all U.S. brokers will not let you enter a short sale order when the stock is trading below 5, so I was out of luck.