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To: Justa Werkenstiff who wrote (137536)12/6/2001 9:40:11 PM
From: sun-tzu  Read Replies (2) | Respond to of 436258
 
<Maybe it says that Big Money is hedging their squeeze>

well, that's true but probably not in the obvious way. when big money players buy a lot of put options, the brokerages that sell them are now short puts...this of course means that they are now LONG. trading is all about the hedge, so as the brokers get longer buy selling more puts, they must short the underlying common as a hedge.

the best part of this is that any buying move, in the appropriate environment, causes the put holders to sell. as the brokers reclaim their puts, they must buy their common stock back and attempt to maintain market neutrality. this of course potentiates more buying and VOILA...you have a short squeeze.

given the current environment, shorts i feel will be very jumpy tomorrow so the above scenario is in play as far as i'm concerned.



To: Justa Werkenstiff who wrote (137536)12/6/2001 10:55:21 PM
From: stomper  Read Replies (1) | Respond to of 436258
 
I was thinking the same thing considering the equity P/C, which is typically the milieu of the retail buyer, was a relatively mild .5-ish all day.

-dave