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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (6128)	3/1/1999 11:47:00 AM
From: Freedom Fighter	Read Replies (2) \| Respond to of 78497

Allen, >>Wayne, back to your hedge idea on Sbarro. Today, vlsi received buyout bid from Phillips at 17. I bought vlsi at 15 7/16 and sold July 15 calls at 2 3/16 for net cost of 13 1/4 plus commissions. Annualized yield of approx 25% if deal goes through. Phillips has cash to support deal and I wouldnt mind holding vlsi at 13 1/4. If deal firms up prior to July most of the 1 3/4 spread will become available by backing out of the position. Wonder who bought 15 call with little upside expectation? << I don't know the specifics here, but I love the numbers. Wayne