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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (2043)	6/24/1999 10:42:00 AM
From: Mark L.	Read Replies (1) \| Respond to of 2693

"Bryan, with the premiums they are asking for IRID options I'm a seller, not a buyer." Could you please elaborate? Granted, the price of the puts seems on the surface to be outrageous; however, isn't the volatility that we expect above the implied volatility? Are you really selling puts against your short position? If so, which ones? Or, are you selling calls? I'm still trying to work out a strategy on IRID and would appreciate your comments.

To: Mama Bear who wrote (2043)	6/24/1999 10:52:00 AM
From: Bryan	Read Replies (2) \| Respond to of 2693

I guess I'm a little more conservative than you are. Willing to pay a little more to reduce risk is what it boils down to. I would probably have been stopped out of a short position today on the open.....watched IRID open @ 14 3/4 and go to 15 31/32 in about 15 minutes. I bought my PUT @ 11 7/8. Had I shorted IRID at that level, I would have stopped myself out. Today's open activity was classically indicative of a 'short squeeze' and now as I type this I see IRID @ 13 5/8. It just assures me that these gyrations are purely short-term. In time, fundamentals will take over and IRID will resume its downtrend. I would have to disagree with you on the 'premium' issue with the options. IMO, it's all relative. If you need to buy a call in an upward move, or if you buy an option ATM, of course you will pay more. But I'll tell ya, I had no problem buying PUTS on the BID the last 2 days. And I will have no problem selling those PUTS on the offer when the time comes. When all is said and done, I will have saved myself nearly $1000 just by being dealt on the BID and OFFER as opposed to initiating/liquidating the options ATM. And if IRID goes to $60 again (Yeah, right), I already know how much I'll lose (and not a penny more). Why am I telling you this ? You probably already know all this BID/OFFER crap. At any rate, good luck. bk