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Strategies & Market Trends : Tech Stock Options

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To: j g cordes who wrote (27629)11/1/1997 1:45:00 PM
From: broken_cookie  Read Replies (1) of 58727
 
Jim,

Thanks for the article. I agree with you about public disclosure of this type of trading. Naked positions should at least be mentioned as potential liabilities on the balance sheet.

It doesn't seem that companies short calls -- based on the article.
Sort of like Pete Rose betting on while managing the Reds. He shouldn't have bet at all, but if he bet to lose, he was a scumbag.

Intc exposed to a billion dollars worth of stock with naked puts, interesting...
That's a potential worse case loss (currently) of 250 milllion. And if the stock is put to Intel it would be reported as share buy back expense. The loss would be well hidden on the balance sheet.

I remember from McMillan that the largest option positiion (short or long) any individual/organization/investment fund may own on any one stock is 8000 contracts. (Someone please correct me if this limit has been raised.)
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