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Non-Tech : Paired Trades and Hedging Strategies

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To: Keith J who wrote (104)7/10/2007 11:09:58 AM
From: Keith J   of 136
 
Sold my EBAY calls for a small gain, but still holding the AMZN puts. Internet traffic numbers for April and May that I saw in a Merrill report appeared very poor for EBAY (at least domestically), and I didn't feel comfortable holding onto the position. AMZN traffic numbers were somewhat better, but still seemed pretty lackluster, considering the hype regarding Harry Potter. And I don't think offering the new HP book at 50% off plus a $5 coupon for pre-orders is making AMZN any profit, and they recently sank more money into their China affiliate.

Will look for another net company to substitute for EBAY and wait to see what happens with AMZN's quarterly report.

KJ
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