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

To: PaperChase who wrote (35745)	11/11/1998 10:06:00 AM
From: Knighty Tin	Respond to of 132070

PC, Shorting stock and buying calls is a synthetic long put. I don't see why Fleck would pay two commissions and get hit by two friction costs for something he could do with one trade. First, I would not be short MU. If a stock can go to 5 times its fair value, there is no reason it cannot go to 100 times its fair value. That being the case, I would be happy with long puts all the way up until it imploded. If I was short, I would cover the short and buy puts with a 90/10. However, I do know that Fleck was short MU in the 80s and 90s, so I don't think the mid-40s are making him cry too hard. It is a setback, but it is still more than a 50% gain on a short sale not even counting all that good rebate interest. MB MB