Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Just_Observing who wrote (5242)	5/4/1999 12:05:00 PM
From: Just_Observing	Respond to of 6021

Option Strategy II Please note that the 15 Jan 2001 call is trading at 5 1/4 to 5 3/4. So if you can get 6 for it, that's a very good deal. The Jan 20 Call is trading at 4 1/4 to 4 5/8. Now if you can get 4 7/8 for that one, your potential profit is $7 ($20 - $13) + $4 7/8 = $11 7/8 on an investment of $8 1/8. I think that's even better than the 15 call option. As I have mentioned before, using spreads with calls can give you enormous returns with very little outlays, especially with ratios. Buy 10 of the Jan 2001 15 calls for 5 1/2 and sell 15 of the Jan 2001 30 calls for 3. You have invested just $1 with a maximum potential profit of $15. There is a loss only if NETA hits $60.