Canadian Options Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Canadian Options

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: william smith who wrote (527)	6/5/1997 8:07:00 PM
From: Dave.S	of 1599

Frequently a large transaction in an equity option can signal some news is imminent. I will give 3 examples in my experience. 1) Today someone brought 400 July 4 Puts for $1.60 on Gandalf. After the close the company announced it was seeking buyers for the company at much less than the current market price. exchange2000.com 2) In September, 1995 there was huge buying of Systemhouse calls right out of the blue one day while the stock did not move from its $10 dollar level. The next morning - bang - up $7 on a takeover by MCI. 3) During 1993 for 3 quarters in a row there was large buying of Puts on NTL the day before earnings were released. In every case the stock dropped the next day, by $5 to $7. The moral of the story is, watch for these transactions. You can make some quick money on occasion.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next