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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (87104)	12/17/2000 6:37:29 PM
From: Joan Osland Graffius	Respond to of 132070

mishedlo, >>Will they sell those S&P puts causing a temporary rise, or will they sit and short sell to get a nice gain. IMO, if they are using the short positions as a hedge they will take them off as soon as they are done selling. If the institutions take the positions off the board slowly I do not think we will not see a spike in the market, but if they all try and get out the door at the same time we will see a spike. The problem is if we get a spike there is nothing but an air pocket underneath. A real good example of this activity is to look at the LU stock chart. There was a large short covering rally around $30, I think it rallied to $33 or so, and then with some news shortly after the stock dropped to $20. Joan