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

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To: Tommaso who wrote (169030)	5/30/2002 6:46:04 PM
From: mishedlo	Read Replies (2) of 436258

Tom I disagree that there were "frightening losses" on the put writers. They hedge by going short. I doubt they lost much if anything. If they did no see it coming we have the snapback rally to resistance where they go short and get out of the way. I remain convinced that the option sellers seldom if ever lose cause they delta hedge. Then we rally to max pain or fall to max pain as appropriate but I bet the overall amt of leap puts on CMGI etc is so tinny compared to the CSCO DELL QQQ MSFT options that such crap was nothing but a side show anyway. I had someone today refer to Max Pain on HGMCY looked it up and biggest position was 160+ options. Had to laugh. Small crap like this is totally 100% meaningless. Do you have counts on CMGI? If you got in near the top and paid 20-30 (50?) points the stock could fall that far and all the seller had to do was short anywhere on the way down to hedge. Since brokerages most likely sold those I am sure they did. M

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