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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (5320)	10/28/1999 10:56:00 PM
From: Gary Korn	Read Replies (2) \| Respond to of 10027

The recent actions of COO, Knight Securities Walter Raquet may provide further evidence that the upside could be limited. In August, Raquet entered into two distinct zero-cost collar transactions covering a total of two million shares. First, on August 20, Raquet sold call options covering 1M shares exercisable at $63.76, and used the proceeds to purchase puts covering the same number of shares, exercisable at $31.02 per share. The arrangement effectively shields Raquet?s one million shares from further depreciation below $31.02, while at the same time, capping his potential gains at $63.76. Then, on August 23, Raquet entered into a second collar covering an additional million shares. This time, the exercise price on the call is $63.67, and $28.65 on the puts. Some may chalk up these transactions to "smart personal finance", but if you are among those awaiting NITE?s return to its previous highs, these transactions may indicate otherwise blank, Raquet owns some 7.6 million shares per the 14-D proxy statement filed back in April 16, 1999. Does the above story about collaring 2 million shares mean that Raquet was a fool not to have collared his remaining 5.6 million shares? Or could the above story mean that Racquet conservatively decided to cap his gains and limit his losses in just 25% of his holdings, but aggressively decided to remain fully exposed to market risk with the remaining 75% of his shares? Gary Korn