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


To: H James Morris who wrote (25721)11/11/1998 8:07:00 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 164684
 
Ps,
Actually a better bet would be to go out until next summer.


James,

Do you believe the market will absorb all the shares from the acquisitions and still keep this stock up here? If we get a few more IPOs in the nets, there may be over supply of stock. Just a thought.

Glenn



To: H James Morris who wrote (25721)11/11/1998 8:22:00 PM
From: umbro  Read Replies (2) | Respond to of 164684
 
Actually a better bet would be to go out until next summer.

HJ, the Jan 2000 120 puts are going for $42 and change. That
puts the break-even just below $80. A 50/50 bet, I'd say, given Amazon's performance, but I'd tend to want to wait for some post Xmas hooplah, with better than expected losses, and then look to throw the long bomb. :)

Boy, $42 is a pretty stiff premium, if you were using puts to
protect the downside.