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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: edamo who wrote (886)	1/10/2000 12:47:00 PM
From: PAL	Read Replies (1) \| Respond to of 8096

hi ed ... the trial and tribulations of moving an account: the acat was rejected by the old broker. reason: i did a lot of trading. after they took a snapshot they did not freeze my account, hence the portfolio was different. account was frozen since jan 4. now have to start all over again. miss several juicy trades like aol/twx arbitrage. another play to contemplate: Buy put (pal buy put? yes, you read it right: buy ) of TIBX, TIBCO Software. Why? the lockout period is over. current float is 7 million, and there are 48 million shares that are unshackeled today. just like people selling after jan 1 to defer taxes for 1 year. did try to short the stock, none available: there is the good sign. if no stock is available for shorting, generally is indication of smart money has shorted all the available shares. optioninvestors sent the alert this morning. makes sense, but my hands are tight. good thing could sneak in lu leaps last friday. the cap button on my keyboard is intermitten. it is infected with edamo flu bug ... lol best to you ed paul

To: edamo who wrote (886)	1/10/2000 1:36:00 PM
From: Eylon	Read Replies (2) \| Respond to of 8096

Option question for the experts in this thread. The AOL/TWX deal bring up a very interesting situation with regards to option on TWX. If I buy TWX 2001 80 leaps what happens when AOL and TWX become one company. I can think of two radically different scenarios. Let assume that just before the deal is done AOL price is still 75 and TWX is at 112.5. After the deal the new company stock price is 75 and TWX owners get 50% more stocks. Just before the deal I have an option for TWX that is 32.5 ITM (112.5 - 80). After the deal: 1) If my new option is for 2001 80 but each option is for 150 shares I am now 5 OTM (75-80) and my option worth very little. 2) If my option is for 2001 53.333 but I have 1.5 contracts for each old contracts each contract is 21.66 ITM (66% of the value that was a day earlier) I did not lose anything. The second scenario make more sense but I'm really worried about the first. Does anyone on this thread know how this transition will be treated? Eylon