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

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To: Lucretius who wrote (283315)4/7/2004 10:23:40 AM
From: MythMan  Read Replies (1) of 436258
 
RealCommentary from TheStreet.com
Short Squeeze Looms Large in Taser
Wednesday April 7, 9:35 am ET

By James J. Cramer, RealMoney Columnist

Funny thing about the options market; it simply transfers risk from the common stock market, it doesn't cure it. You don't create fewer problems when you add calls and puts to a volatile situation. You create more problems.

That's what's happening right now in Taser (NasdaqNM:TASR - News). The free-lunch folks, the ones who figured, "OK, I don't want to be bought in so I will short the stock in puts," are getting their heads handed to them. So are the market makers, who can't find stock, either, when they sell you the puts. In the meantime, retail buyers keep coming in and buying five lots of puts, causing an even more noxious situation.
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