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To: Magrathea who wrote (221816)	12/30/2006 10:25:18 PM
From: Milan Shah	Read Replies (1) \| Respond to of 275872

it has been suggested that the writer(s) of the Jan 20 puts (not having a corresponding straddle option) would then short the stock with a target under 20, using the puts to cover the position. Ok, you lost me here. If I am shorting the stock with a target under 20, how does writing a put constitute a cover? I would want to buy an out-of-the-money call (say, Jan 22.5's) in case my short position backfires and the stock escalates. Overall, I see your point about these mondo trades happening instantaneously - about the only theory that makes any sense is that there are two large players that have different risk appetites, and are using the market to arbitrate. That would imply that the market is an honest place - the very assumption that your valuable option tracking exercise is trying to challenge. Milan