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Strategies & Market Trends : NetCurrents NTCS

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To: Jan Crawley who wrote (308)	10/6/2000 2:36:20 AM
From: Dan Duchardt	Read Replies (1) of 8925

Jan, 2,500 Yhoo-Jan-185 puts were traded(or opened) today at $97 and another 2,500 Yhoo-Jan-210 puts at $122. It was me (NOT!). Sold the JAN210 at $122 and bought the JAN185 and collected the $25 per share. 250,000 shares x $25 = $6.25M. Both of these are going to close in the money, so I have to give back the $25 in January. In the mean time, I have to let it sit in my account collecting interest. Say I get 4%. $6.25M x .04 x 3/12 = $62,500 free money. . . no risk assuming you set it up with the credit guaranteed. It happened again Thursday for 4500 contracts with $25 spread. I don't know if this is something the options specialists do in the course of normal activity, but that would not surprise me. If it's a trader with deep pockets setting up spreads, it's a sweet deal. Dan

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