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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: slurper who wrote (15156)	5/6/1999 1:25:00 AM
From: HF	Read Replies (3) \| Respond to of 41369

Slurper, I have a problem with your solution. If you buy the June 160 and sell the May 145 you can lose your life savings. Did you really mean to say this? If AOL was higher than 145 you will have to cover those short options or you will be assigned at 145. Plus your margin requirements are a lot higher since you are in a naked position. If you meant buy the June 145 and sell the May 160 then I agree. This is a covered debit spread and can make you fifteen points if AOL is over 160 at the June expiration. Personnally I prefer Leaps.