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.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Teflon who wrote (29048)	9/2/1999 8:04:00 AM
From: johnd	Read Replies (1) \| Respond to of 74651

Actually folks, I think the Sept 120 put buying is for the following reason. There is an institution out there that wants to unload 1.69 million shares of microsoft. But has written the sept covered calls at various prices. To buy them back and sell the shares, there is still time premium to be paid. So it is better to buy the sept 120 put with almost no time premium. The instituion is obviously worried about next 11 days of potential downfall well below the covered call strikes. The reasons: a) No Tracking stock or spin-off (the recent 10 point adv.) b) 9/3/99: Sept jobs data c) 9/9/99 mainframe "stop program" bug d) 9/10/99: DOJ new starts again e) 9/20/99: DOJ trail hit full force