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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Monty Lenard who wrote (9218)	8/8/2000 7:32:11 AM
From: Lucretius	Respond to of 436258

LOL

To: Monty Lenard who wrote (9218)	8/8/2000 3:14:39 PM
From: Jorj X Mckie	Read Replies (3) \| Respond to of 436258

Let's see, you are calling Gary a clown because he made a mistake about how a stock would react with the 56000 Sept 60 puts that were sold the other day. However, it would be hard to argue that they wouldn't provide a floor at 60. By the definition on this thread of what clown is, maybe Gary qualifies. He bought GLW when it is in the low 100s and it is now at 284. Message 12622983 finance.yahoo.com He has made quite a few other good calls as it turns out. Maybe Gary doesn't play options that much and therefore doesn't know the nuances of each and every reaction. But he certainly knows how to make money...Oh, gee I forgot, that making money qualifies him as a clown. When are you AZWs going to figure out that many of the people you are calling clowns have figured out that the market is overvalued and that we are in a bubble, but not everybody is so stupid as to fight the prevailing trend (whether up or down). In short Monty GFY :-)

To: Monty Lenard who wrote (9218)	8/8/2000 3:29:55 PM
From: Jorj X Mckie	Read Replies (2) \| Respond to of 436258

PGB Here's Gary talking about a "bubble" and questioning the value of JDSU. Message 14179818 Just pointing out that your characterization of Gary as a clown is...ummmmm....wrong. BTW: did you know that it is impolite to ridicule people behind their backs? JXM

To: Monty Lenard who wrote (9218)	8/10/2000 12:25:31 AM
From: John Pitera	Read Replies (4) \| Respond to of 436258

Monty you are mistaken when you think that a put position that is covered is done in puts ...does not have to be the case and ultimately options can only be effectively hedged by market makers with the underlying instrument. I worked in conjunction at times with options desks at both citibank and chase and FX options are hedged with spot FX or forward positions. same with stocks. gary did not say cover the puts, he say cover the position which is the underlying exposure that one has in a derivatives position. and I got news for you if you are long CSCO puts you are short the stock. SInce the position is ultimately only a variation on being short CSCO common, to offset profits in a profitable put position, that could disappear with a price rally in the underlying stock someone has to get long the common. a retail investor will normally just unload the options, but the market maker will need to get long CSCO to lock in the profit of the puts. anyone with 56000 puts will not sell them normally they will hedge in common. John