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

To: Knighty Tin who wrote (87220)	12/19/2000 5:36:36 PM
From: Tommaso	Read Replies (2) \| Respond to of 132070

Now Mike, here's something I want you to explain to me. The Dow Jones LEAP put, strike price 140, for December of 2002 sold today for 25. The DJIA ended at under 10,600. The LEAP put, then, cost LESS than the current value, being priced as if the Dow were at 11,500 [140 less 25, or 14,000 less 2,500]. It's European style option that cannot be exercised until expiration. But it looks to me as if what we have here is INVERSE premium. I guess someone is figuring the present cash value is less than the future cash value. Now am I nuts or have I discovered El Dorado?

To: Knighty Tin who wrote (87220)	12/19/2000 6:46:10 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

Mike, surprise rate cut? where's the -g- ? Do you suspect that the tough love in the credit markets means the leveraged players need some help? What does AG have against us bears? Mike

To: Knighty Tin who wrote (87220)	12/19/2000 7:12:53 PM
From: Earlie	Read Replies (2) \| Respond to of 132070

MB: A darned good comment. He has done it before. I didn't think he could do it today as he needs to line up the Europeans to move with him, but that shouldn't take more than a few weeks to accomplish. Bought back some short positions way "too soon" today but have long since come to believe in Farouk's delightful comments about same. I suspect we get some negative carry-over into the opening half hour tomorrow and if so, I will buy back more positions leaving only some "core" holdings. There will be some furious bounces before the year is over. Have also continued to acquire cheap U.S. dollar collapse insurance (gold stocks). (g) Best, Earlie