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Technology Stocks : Apple Inc.
AAPL 257.32-1.2%1:52 PM EST

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To: Alomex who wrote (18506)9/25/1998 1:27:00 PM
From: Jonathan Bird  Read Replies (2) of 213181
 
I said it before, IMHO most of these shorts are option holders hedging some of their positions.

I've heard of shorts using options to hedge their short positions, but not the other way around. Why would an option holder want to use a short as a hedge, as opposed to say buying a call option that was less in the money, or buying a put as a hedge instead? How can anyone hope to make any money using a hedge with unlimited downside(a short). I hope someone can explain this to me.

Jon Bird
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