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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Voltaire who wrote (7609)10/12/2000 3:48:50 PM
From: Jim Willie CB  Read Replies (2) of 65232
 
INTC is up a fraction.. CSCO holding at 50
MSFT down tiny... ORCL up a little
positive signals from techland

got a serious comment about Houses protecting inventory
my guess is they sold tens of thousands of QQQ calls last month
maybe a few hundred thousand contracts

you protect your personal shares by selling calls
the Houses protect their inventory by selling QQQ calls
they probably sold them by the 1000's from 4300 down to 3600
now they watch them die worthless

Houses dont have to buy buy buy to protect their inventory
they must buy eventually to protect future commissions
thus saving their customer base
dont you think so?
/ jim
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