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Technology Stocks : Intel Corporation (INTC)
INTC 35.94-5.1%3:59 PM EST
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To: Road Walker who wrote (97947)1/31/2000 11:15:00 PM
From: Mary Cluney  Read Replies (1) of 186894
 
John,<<<What ex. and strike did you buy?>>>

I don't know where I read this, but 85% of options expire worthless. MB is one of those rare exceptions. He buys boatloads or slug full, as he puts it, of Puts (lots of Intels) in the greatest bull market in US stock market history and turn huge profits.

There must be some method to these fortuitous investments. I only wish I could understand his methodology. It would be very instructive for me if he not only tells us that he has made tremendous profits on these investment but that he would also tell us ahead of time the expiration and strike of these investments.

He has no trouble telling us that he has made huge profits - frequently telling us his percentage gains - but I can't understand why would he not tell us his ex. and strike?

I suppose that if you can make these huge profits on Puts- you should also be able to make huge profits on Calls. Why would people who sell Puts and Calls favor one over the other. Aren't they pretty much like book makers for sporting events? They don't have to know much about the sporting event (or equity) - all they have to do is figure out how much money they want to make (the Vig?) and then find the point where half the people would go one way and the other half the other.

The book maker and the people who sell the Puts and Calls seem almost always to make out. Even the Nobel Prize winning mathematicians at Long Term Capital Management could not do what MB and and those people on the Michael Burke Thread seem to do - consistently make money on options exotica - in the case of MB on buying out of the money puts in a bull market.

I just can't do the math.

Mary

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