Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (5788)	11/14/2001 10:24:38 PM
From: mishedlo	Read Replies (1) \| Respond to of 99280

<Delta hedging on the big index plays kept us running.> admittedly i see i need bone up on "delta hedging".max Look at CSCO call options at 17.5. Whoever sold those calls was going to lose their ass if they did not go long to hedge. The more CSCO went up the more the whole damn thing fed on itself. Now what? Now the option hedgers are sitting on a friggin ton of CSCO and what are they going to do with it? Sell it perhaps? A side benefit of a selloff in CSCO is destruction of CSCO DEC 20 calls, DEC 17.5 calls etc. There are few puts so who cares. People will probably start buying DEC 15 puts as soon as it falls to 18. If that is the case, perhaps CSCO stalls right at 15. What I want to see is huge call buying all the way down. Doubt it happens but I am hopefull. The more calls and fewer puts bought in the next downturn, the lower we go. M