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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: bruiser who wrote (18797)	5/2/2000 2:38:00 AM
From: Ira Player	Read Replies (1) \| Respond to of 28311

Not necessarily... I sometimes use Deep In The Money (DITM) puts as a proxy for going long when I would have to use margin to take the position. It may be someone taking a bullish position. For example, sell 10 (I think smaller that 2000...) July 100's at 42 1/4 (GNET at 58 1/8 when this written...) and get a credit of $42125 - commissions. If in July the stock is put to you, you get it for 57 3/4 and earn interest on the $42125 until then. If it goes down, you are no worse off than being long. If it goes up you win, but are capped with a 42 1/4 max profit in 2 1/2 months...oh my... Anyway, it saves on interest charges if you would have gone long anyway and the margin requirements are less. Do not assume a large put open interest is bearish... Ira