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

To: Steve Lachance who wrote (14149)	8/20/1998 10:25:00 AM
From: Jan Crawley	Read Replies (1) \| Respond to of 164684

You are right! The premium for Sept. 120 is $9 right now. :), Jan p.s. How many shares did you short? don't have to answer; but pls make sure that it's sort of small and managerable...

To: Steve Lachance who wrote (14149)	8/20/1998 10:39:00 AM
From: IceShark	Respond to of 164684

Steve, No, not exactly the right track. The option is going for about 9 bucks. So come Sept. a stock close at 120 or less means you will make $9 period, through a combination of your short, put loss and premium received. Even if it goes to 50 bucks. $50 close you make 70 on the short stock, plus 9 premium on the put, less 70 on the put loss = $9. You will lose $1, from the premium $9, for each point AMZN closes above 120 at Sept, and any close above 120 will be a dollar for dollar loss. Get it? You basically limit you upside gain to $9 should AMZN fall and get a cushion of $9, should AMZN rise above 120. But you are right if you are talking just about the put itself. Regards, IS