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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (1029)	11/14/1999 4:42:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 2317

Options are cheaper..for $10,500,000 they just took a position, in 700,000 shares ..chances are they didnt have the kind of balance it would take to do that many puts or buy taht much stock..it's a risky spread but a good one if she makes 30. At $30 or above they get $50,000,000. or 233% profit on the spread. If you bought the stock now at $30 the profit would be 33% ..they are swinging for a home run, but she better make $26.5 to hit it..hmmm then too maybe they do have some money to come in and buy .. any way that's sure a lot of options for her to trade on two strikes in one day. 7K on both. I assume it's a spread..if not then it's a superduper bullish bet by some one if it's 14k contracts.. Now the bigger question is who took the other side, and why..the most likely answer is a deal this big on a stock like this was arranged and insiders sold the calls to a fund manager against options or stock that they have. --------------- isn't 7K contracts 700,000 shares ? and if it was not a spread we can double taht. --------------- Hmmm PRICE (T.ROWE) ASSOCIATES 06/30/99 6,003,300 2 AIM MANAGEMENT GROUP INC. 06/30/99 5,790,200 3 BARCLAYS BANK PLC 06/30/99 5,682,900 4 MASSACHUSETTS FINANCIAL SERVICES CO - OTHER 06/30/99 3,963,289 5 EQUITABLE COMPANIES, (THE) 06/30/99 2,905,300 6 PROVIDENT INVESTMENT COUNSEL INC 06/30/99 2,897,430 7 MORGAN STANLEY DEAN WITTER & COMPANY 06/30/99 2,786,995 8 FIRSTAR CORPORATION 06/30/99 2,715,955 9 AMERICAN INTERNATIONAL GROUP, INC 06/30/99 2,598,996 10 SELIGMAN J.W.&CO INCORPORATED 06/30/99 2,502,551 ---------------- If for no other reason than this bet I think this stock will be up by April. Above are the 10 top players but someone wants more of this stock, with 86% alreasy held by instatutions getting any amount could run the price up to high, but finding someone who will sell it on an average of 26-1/2 and paying them some of the money now could be a win/win for both parties. -------------------- I'm going to have to grab the shirt tail on this bet, come Monday, 26-1/2 before to long looks almost like a sure thing. Jim