Healtheon Corporation (HLTH) Message Board

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Technology Stocks : Healtheon Corporation (HLTH)

HLTH 0.120

0.0%

Sep 10 5:00 PM EST

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To: Triffin who wrote (597)	4/7/2000 1:13:00 PM
From: JH	Read Replies (1) of 861

A healthy amount of skepticism shows your wisdom. I think this stock can be traded in / out for the next few weeks, using the channel created by Tuesday's bottom and today or tomorrow's short-term top (whatever that may be). The moms and pops have been sucked in from the headlines which have been splashed around the world. Heck, even my Bloomberg showed the news as "Top" news this morning. Which investor hasn't heard of the news already, by now? Close to zilch. Hence a possible selling opportunity today / tomorrow (late comers may buy at mkt opening tomorrow). I bought a bunch of April 25 call options on the dip this morning at $4-1/4 (now $5), and sold half of my common stock holdings at $28-5/8. Basically replacing my shares with call options to limit the downside should this fall apart again. If I was Jim Clark or John Doerr, the smart way to accumulate these shares would be to short puts at various strike prices, and maturities, taking advantage of the elevated IVs from the recent swoon. For example, the May 30 puts are bid at $5-7/8 (an IV of 132%). Shorting these may obligate the put writer to buy stock at an effective price of about $24-1/8. Not a bad deal! I think I will short some out-of-the-money puts (such as the May 20's) on any pullbacks. The news this morning is a virtual license to print money if these guys really intend to do as they say. Heck, I'm going to sell the rest of my shares and short some May 30's right now ! / John

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