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

To: Frederick Langford who wrote (29612)	2/12/2002 2:32:14 PM
From: Israel	Respond to of 99280

NAZ hod, up nearly 30 points from low.. any news out there as to why the rebound?? Israel

To: Frederick Langford who wrote (29612)	2/12/2002 4:52:53 PM
From: mishedlo	Read Replies (1) \| Respond to of 99280

The action on EBAY has been telling. It is acting as if one of those 5-10K blocks of puts is owned by MMs and not J6P. If a small institution decided to buy shares of EBAY at say 60, and short sold a block of PUTs on it, the MMs would have a vested interest in keeping EBAY below 60 (as they own the puts). That is how the stock is acting. There is either something "wrong" with EBAY (as in news that is fortcoming and no one is willing to push it up from here), or the options are not what they seem. That is one of the problems of Max pain, as one does not really know who the option holders are. If J6P is long calls and short puts at say 80 on some random stock, it might appear that max pain is 80, when in fact it is unlimited (when the MM's can close it anywhere below 80 for a profit, and the lower the close the more profit for the MMs). That is one example. I would gladly pay a fee to know who is the option holders (MMs, commercial interests, and non-commercial interest), but that info is not readily available. I had EBAY calls but bailed on them for a small loss. It was not acting towards the "script" so I ain't fighting it. Some will regard this as a "failure" of max pain. My belief is that Max Pain worked to a tee (but we do not fully understand the option situation) OR there is news. News over-rides max pain every time. Hank is hoping for bad news. I hope he gets it. LOL M