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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (34673)	10/28/1998 6:36:00 PM
From: Bat5454	Read Replies (1) \| Respond to of 132070

Michael - regarding the leap puts/calls you discussed (on LU & Dell) a while back: I've been watching prices on a few different issues. I haven't seen any situation where it's possible to establish this position all at one time, unless you accept a negative outcome if the stock ends up below the lower strike price. Am I missing something? For example, CPQ today was at 29 1/2, the Jan 00 30 call was 7 bid, & the Jan 00 25 put was 4 1/8 ask. Wont this end up negative if it closes below 25? I've watched with a few other possible candidates near strike prices (Dell, CSCO), & the numbers have always come out the same. It seems like you'd have to leg into it to get a positive return at the lower end. THanks - you're very generous with your time & insight. Its much appreciated. Bruce Taylor