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 : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Michael M who wrote (17870)	3/10/2000 1:00:00 PM
From: gbh	Read Replies (2) \| Respond to of 18016

Re: the puts. How do you know they were "bought"? They could have been "sold", as in sold short. This would be a bullish move, to capture a fair amount of premium, with little risk. Of course the risk is that ALA stock goes down, and takes NN with it. In which case, if the transaction isn't covered (buy the puts back), then the guy would have to take delivery of 89500 shares of NN stock at 30. He may then be able to turn this into ALA stock, if he holds this stock, at whatever price the transaction finally takes place at. I'd say its more likely that this guys sold these puts short, rather than buying them. Buying 30 strike puts at this point is a bet that ALA stock will be tanking soon, or the deal is falling through. Neither of which seems likely to me. Although, I'm always the last to know. :) Gary