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Non-Tech : KIDE a good play to capitalize on Pokemon craze

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To: Kevin McKenzie who wrote (445)9/24/1999 4:22:00 PM
From: Eric Fader  Read Replies (1) of 1239
 
<Just think how quickly KIDE can go up (or down) $2, given its recent trading history, and the option premiums don't seem so high.>

Kevin - have to disagree with you just a bit here. I'm not the world's greatest expert on options, but I know the firms that make markets in options generally immediately hedge by buying or selling the underlying common in order to lock in profits and remove their risk. Of course volatility of the common is a big factor, but I believe the premiums are unusually high right now simply because the initial surge of demand for calls among retail investors has not yet dissipated. I'd also like to buy a bunch of Februarys, but not at these prices. -Eric
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