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Strategies & Market Trends : The Options Box -- Ignore unavailable to you. Want to Upgrade?

To: Poet who wrote (10797)	5/12/2001 2:42:38 PM
From: unctarheel	Respond to of 10876

Poet, I was just looking over some put quotes for LU. Here is an interesting one: Puts Sale Bid Ask 01 May 25.00 (LU QE-E) 14.20 pc 14.80 15.20 Of course, when trading starts next week I imagine time value of option would start to erode quickly, so probably couldn`t get 14.20. Why not sell these puts to reap some profits in a week? Then turn around and do it every month. With the stock trading at 9.95 IF one could have gotten a trade between the bid and ask on Friday, it looks like practically `free money` to me. I haven`t sat down and really tried to figure it out, but it looks that if the sum of the stock price and the premium received is within 25 cents of the strike price it would be a safe trade. Maybe your experience in this type of trading has proven to be able to accept a wider spread maybe up to 60-70 cents and it still be fairly safe. I would appreciate your opinion on this strategy.

To: Poet who wrote (10797)	5/14/2001 7:50:07 AM
From: t2	Read Replies (2) \| Respond to of 10876

Good morning Poet, Did you notice that takeover of HSE this morning...a natural gas stock. Funny thing is that over the weekend I watched this Yahoo Finance Vision story listing about 5 stocks that would be good takeovers in the sector. MND, HSE, EEX, PPP, WGR. I believe there are also other companies in this sector that fall into the same boat. I looked at them and thought HSE looked like a good buy this week; based upon P/E and also the fact that they have Rocky Mountain properties just like Barrett did..which was the other big takeover. In addition, I believe WGR has rocky mountain properties as well..not 100% sure though. An another interesting point is that HSE did have insider selling in early April....that means we got a surprise in the last 3 weeks or so. WGR's CEO put off his retirement to Nov from May...so that the board has more time to search for a successor which is the official reason given. I bet that the guy simply wants to sell the biz and then retire. Just a hunch. Also had read that SGY (stone energy) Exec was a big inside buyer. Just thought I would throw these ideas out on the natural gas sector and see if anyone has any comments. Click on the May 10 Yahoo Finance Vision story. "IPOs and Takeovers:The Next Oil and Gas Takeover Targets" [3.1 min] - Yahoo! biz.yahoo.com ----------------------------------- BTW--I also think the techs turn late this afternoon...probably by no later than 2pm (could be earlier), the rebound begins.