Mark, Robert, I apologize if I seemed overly negative. I am definitely not short the stock market, or tech stocks.
But I don't have the nerve to invest in Internet stocks. Like Master Kam says, " I just don't want to be caught in the wrong position when the tulips explode."
RE--MU, that went from the 90's to 17 or so in 1995-96.
For Personal Use Only
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cbs.marketwatch.com
Micron gamblers come up winners
By Brenon Daly, CBS MarketWatch
Last Update: 6:07 PM ET Dec 17, 1998
StockWatch
CHICAGO (CBS.MW) -- In the fast-and-loose world of options, things
can change very quickly indeed. And that can raise some questions about
how information makes its way in the trading pits.
Remember that this column closed on Tuesday
noting the heavy trading in Micron Technology
(MU), particularly in the December 50 calls (MU
LJ). Nearly 5,000 of those contracts changed
hands on Tuesday, closing off 1/8 to 9/16.
Move ahead to Thursday and those same
contracts are worth 2 7/8 -- or nearly six times
their value on Tuesday. More than 6,300 contracts
traded. (See CBS.MarketWatch.com option
chain for Micron Technology.)
The reason for the jump: positive comments from
BancBoston Robertson Stephens analyst Dan
Niles, who said he expects the stock to hit 200 by
the end of 2001. "We're at the start of the next big
cycle in semiconductors," said Niles. See related
story.
Niles' comments were noteworthy because they
included a three-year price target, instead of the more common one-year
target.
The huge gains and heavy trading prompt some questions if somebody
knew something.
Jon Najarian, who trades Micron for Mercury Trading at the CBOE, said
some of the activity may have been players who knew -- or thought they
knew -- about the positive comments before they were released.
Regulatory officials for both the CBOE and the Pacific Exchange, where
Micron Technology options trade, weren't available for comment.
Typically, they don't discuss cases except to say they are "conducting a
routine review."
"People are not using options to off-set risk, as they were in September
and October," Najarian said. "Now they're looking for a big score."
Brenon Daly is an online reporter for CBS MarketWatch.
© 1998 MarketWatch.com
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