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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Lucretius who wrote (219237)2/6/2003 6:44:35 PM
From: mishedlo  Read Replies (2) of 436258
 
Can't anyone here give you a straight answer?

There are enormous (hundreds of thousands of 05 leap spreads ITM being initiated). Totally F*ing up the put call ratop. Last couple days it was really something like .63 without those puts. Do not know what the real ratio is today.

It appears to be a cash out bear spead deep ITM with strike 45's and srike 55 QQQs.

Speculation today is that it is part of a Merril Lynch screw job recent offering promising buyers of the offering 300% return on QQQ profits (if indeed there are any), but they are capped. Most you can get regardless of how high QQQ trades is about 40% and you are locked in until 2005.
You suffer 100% of the losses of course and Merrill did the play so deep ITM it is doubtful it can ever hit. No doubt there is other hedging going on as well but the PUT activity is enormous.

If QQQ goes up huge merrill gets all the excess. If QQQ goes down, Merrill keeps it.

F merrill.

M
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