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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: John Pitera who wrote (9879)	8/10/2000 12:42:10 AM
From: Lucretius	Read Replies (2) of 436258

LOL.. now now.... you are REACHING, john... that numbnut said "the BUYER of the puts will propel the stock price higher when HE is forced to cover." he obviously mixed up a put and a shortsale (one is obviously a derivative of the other hence the name "derivative" but that's beside the point -bg-).... we'd hope that whoever wrote them would hedge w/ a short sale, but some cowboys don't or can't as call writers in gold found out in sept when the mkt moved too fast on them and they couldn't get long in time to properly hedge their strike.. HO HO.... leaping to the next step of going long the stock to hedge the puts after they have become profitable or the writer covering his hedge once the contract is closed is a little far down the line and making several assumptions and not at all what he meant. conversely, he was not talking about a mkt maker going long to hedge when someone else (like DELL for example) writes the put and the mkt maker is buying and wants to remain mkt neutral, either. the guy just doesn't get it... nothing wrong w/ that... but don't go banging on monty for pointing it out.. or he may take you to the DOME (BG)

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