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To: Vegas who wrote (9152)11/23/1998 6:04:00 PM
From: jw  Read Replies (1) | Respond to of 14162
 
Joe, not sure about how to calulate the % but 20 sounds right
Let's do the math;
buy stock at 8½, sell calls at 2¼ til' March, (Dec. Jan. Feb. Mar), 4 months,= 1/3 year.
2.25 ÷ 8.50 = 26.4 % int. for 4 months. or
26.4 ÷ 4 (months) = 6.6 % per month or
26.4 x 3 (1/3 of a year) = 79.2 % per year. ( not too shabby
<g>. Someone correct me on this?,

Regards, /jw



To: Vegas who wrote (9152)11/23/1998 6:07:00 PM
From: Herm  Read Replies (2) | Respond to of 14162
 
I could not find any projected growth rate for WALK. The stock has
been pumped up and the RSI is very high at this point. Not much open interest on the stock other than the MAR 7 1/2s @ 2 11/16s.

NASDAQ: (WALK : $8 1/4) $115 million Market Cap at November 23,
1998 Trades at a 52% Discount PE Multiple of 19.6 X, vs. the 40.8 X
average multiple at which the Software & Services SubIndustry is
priced.

Might be worth a roll of the dice if you can handle the risk.