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Strategies & Market Trends : Tech Stock Options

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To: j g cordes who wrote (35953)	3/4/1998 5:49:00 PM
From: Don Lloyd	Read Replies (1) of 58727

Jim - PMFJI, <<check this out.. LLTC has an interesting options play I'm trying to figure out the intent of. 1000 May 80calls and 1000 March 70puts. I'm guessing they sold the calls on this runup (against holdings) go long short term puts on something around the corner taking the stock down. Just a guess.. will be fun to watch. Transaction was about 300,000 although I don't have time & trade feed.>> I happened to see a pair of 750 contract trades on March 70 puts and March 70 calls at about 11:30. They were both reported at 3. But the calls are now shown to be May 80 calls. With the stock at about 70, my assumption on the initial report was that this was a collar on 75K LLTC shares, long puts, short covered calls. Now it just looks like the calls were financing for the short term puts without much limitation on stock upside. The additional 250 contracts were probably a separate execution of the same thing at slightly different prices. The puts are effective for warning season, and the calls are not limiting without a new high after the April report. Regards, Don

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