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To: Jeffry K. Smith who wrote (8502)3/21/2000 5:01:00 PM
From: Jim Willie CB  Read Replies (2) | Respond to of 35685
 
on fronting with options
suppose QCOM is about to move in a big way
by that I mean the Houses are coordinating accumulation and a rally

first, BEFORE they bust the upside, they accumulate option calls quietly
in a matter of a few days or a couple weeks, premium pumps up the whole option chain out of the money

second, they purchase the stock and drive it north
they send the stock even higher than is expected

third, they sell their highly lucrative option calls

fourth, they sell much of their hotshares in the commons

massively profitable maneuver
thus, watching call premium is an early warning signal of an upside move
/ Jim