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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Louis V. Lambrecht who wrote (39404)	12/27/2000 4:39:06 PM
From: adcpres	Read Replies (1) \| Respond to of 42787

Interesting proposal. But if I had $138M to gamble on options, I doubt I would need to generate $6M cash using such a risky vehicle. Anyway, risking $138M to gain $1M (.72%)by expiration does not seem worth it. I like better returns. With the current volatility in the market, one can make as good returns( 10-12% in a day!) just trading common stock and not gambling with options. The premiums with this volatility is a killer. GH

To: Louis V. Lambrecht who wrote (39404)	12/27/2000 4:46:43 PM
From: dawgfan2000	Read Replies (1) \| Respond to of 42787

Equally interesting is the position/viewpoint of the holders on the other side of the trade...

To: Louis V. Lambrecht who wrote (39404)	12/27/2000 5:49:40 PM
From: Jan Crawley	Read Replies (1) \| Respond to of 42787

Hi Louis, thanks. This one is very interesting too: Yhoo - 8K Jan-185 puts traded today at $155, and 8K Jan-210 puts at $180. Both are on the money puts with OIs=19580 and 4105 repectively. Now, if this is the hypothesis..... A big short position, 1.6M short shares, were being covered(hedged) today....with 01-02-01 as the premium settlement date.(to defer the premium gain to next yr.) Where do you think that Yhoo is going in Jan?

To: Louis V. Lambrecht who wrote (39404)	12/27/2000 11:31:41 PM
From: Gersh Avery	Read Replies (1) \| Respond to of 42787

Re some sort of arb play on options today .. Sounds like the play did something like this: Write deep in the money puts on beaten down major stocks .. take the some of the proceeds and buy near the money OEX puts. I noticed two items that people here mentioned .. large volume of deep in the money MSFT puts and a strong spike in the VIX. The above play would have done both of these. Percentage gain in the near the money OEX puts would be much greater than the loss in the deep in the money written puts. If the market moves up the beaten down stocks would probably move up the most. A winner either way .. largest gain if the market moves down.