Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Biotech Derivatives -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (252)	6/24/1999 4:20:00 PM
From: Biomaven	Read Replies (2) \| Respond to of 555

David, I'm selling some SPY's against my bios.... wonder what the correllation is there!?! Something I've tried a few times, never with much success. Betting against SPY hasn't worked for a decade or so; maybe in the new millennium ... Peter

To: LLCF who wrote (252)	6/24/1999 5:07:00 PM
From: LLCF	Respond to of 555

Stefaan: When I say the NBIX puts are cheap, it doesn't mean I want to short the company... you can buy the put and buy the stock and own a "synthetic call" option. The puts in NBIX are quoted in the mid-70 implied volatility range... the calls are quoted in the 110-120 vol range. The MM's have seen put sellers and call buyers, they sit there and do the arbitrage [albeit the volume is nil, but what does trade, this is whats happening]. Example: BUY NBIX puts at 1.25 buy the stock @ $4.75... you pay a call premium of $1 + interest costs on stock. The call is quoted 1 1/2 offer! Carry cost = ($5* 5.5%)/2 = only 13cents. Puts are 3/8 cheaper. DAK

To: LLCF who wrote (252)	6/25/1999 2:54:00 AM
From: SnowShredder	Read Replies (1) \| Respond to of 555

Hi David, Goldman buying tons of "DOW" puts... at the money. Thanks...I'll be on my toes (maybe they believe in the 9 month cycle low?)...do you know who was the seller? Thanks again...Best of luck, Where'd He Go? techstocks.com To: +heinz blasnik (18476 ) From: +KM Thursday, Jun 24 1999 6:09PM ET Reply # of 18530 From Street.com market roundup: Goldman Sachs bought July 10,700 puts to the tune of 20,000 contracts, at an average price of 2 1/2 ($250 per contract), according to a trader at Wall Street Access. It was "a very bearish signal," the trader said. "Even if they bought stock and this is a hedge against it." The order crossed at 4:09 p.m. EDT. Goldman Sachs declined to comment.