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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (52804)	7/15/2001 10:50:15 AM
From: phbolton	Read Replies (1) \| Respond to of 53903

My guess is that most of the warrants went to folks who are hedging various positions. A Yahoo post, of all things,covered one of the ways to do this. Another is to use the warrants to hedge "forward sale" positions. Note that those who have hedged the warrants want the stock to plummet, at least once, in the near future. $17 for a 2008 $56 call is reasonable given how widely MU can swing and the current pricing of long term options. The stock may have one, or even a few more upward spikes as the company spins down the drain. messages.yahoo.com On July 13th, there was a volume of 3000 on the MU Jan 2004 50 strike (LGYAJ) and a volume of 4891 on the MU Jan 2004 60 strike (LGYAL). The daily range of LGYAJ was 10.70/12.40 and the daily range of LGYAL was 7.90/8.50. I think it is obvious here that some players sold these calls and took the premium to buy the warrants. Pros wouldn't take this position unless they felt there was a very low probability of MU breaking 50 anytime soon. If Micron's stock price does a 2-1 stock split the hard way ;-) before the end of the year, these players may just buy these calls back on the cheap and have no risk but a large upside reward going out through 2008.

To: Skeeter Bug who wrote (52804)	7/15/2001 12:38:29 PM
From: Paul A	Read Replies (1) \| Respond to of 53903

Skeeter- just as there is a site that gives us daily updates on Bill Gates wealth, there should be a site that tells us how much cash Micron is buring each and every day.. MU was acting strange on Thur/Fri for obvious reasons, but I have faith that we can get her back into the upper 40s before this next phase is over with.. If I had any brains id go long some techs here, but I just cant.. Ill just wait for the party to subside