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Strategies & Market Trends : Options

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To: freeus who wrote (7797)5/12/2000 10:47:00 AM
From: PAL  Read Replies (1) of 8096
 
Freeus:

It seems that many feel that GMST has hit bottom. The buyer of your put might have a long term holding of the stock, locks in the l/t capital gain which includes the option gains, and then use the proceeds to buy more GMST (or other stock) since there is a sign that the market is starting to turn around (although the averages have not confirmed). Just hope that that seller is right.

BTW: apparently you did not have a buy stop on your naked puts.

Paul
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