Options Put Giants In A Jam
In the great bull market of the 1990s, many companies thought they were printing money by selling options on their own stock. Microsoft Corp. made about $1.8 billion in the three years ended last June by selling puts to investors who bet that Microsoft's stock would decline. As the stock rose, the puts expired worthless. Over the same period, Dell Computer Corp. reaped $97.5 million selling puts on its stock. Even Adaptec Inc., a small manufacturer of computer peripherals, made about $13 million.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Tesla Unveils ‘World’s Fastest Production Car’ and Electric Big Rig
- Norway Idea to Exit Oil Stocks Is ‘Shot Heard Around the World’
- Goldman Sachs Sees Four 2018 Fed Rate Hikes as U.S. Growth Gains
- Honda Recalls 800,000 Odyssey Minivans Linked to Injuries
- The Questionable Math Behind Manafort’s Extravagant Home Renovations