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To: Bill/WA who wrote (204936)	11/15/2002 1:35:05 AM
From: mishedlo	Respond to of 436258

The question is was it a bet that HI would go down or up. Yes there are two side to the trade, but one side is more or less forced to take the trade the other is optional. To provide liquidity to the market the big options pits and brokerages put a bid/ask out there that they will honor. They assume they will make money on the spread with proper hedging. The other party buys at the ask and sells at the bid. I do not know how blocks of thousands of these are handled. Was it done in a big block or did someone accumulate a short or long position. More important was it done with insider knowlege. Had it been calls I suppose it would have been more suspicious. But selling naked puts on that info was a good play as well, perhaps even better (if that's what did happen). I assume it did but have no proof. M