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Biotech / Medical : biotech binary events -- Ignore unavailable to you. Want to Upgrade?

To: IRWIN JAMES FRANKEL who wrote (253)	4/10/2007 8:09:20 PM
From: Robohogs	Respond to of 295

It was the spread strategy gone awry. I was long something similar to 100 2.50 calls for April and long the same calls for May - the simplest strategy ever created and among the safest. 2000 shares worth (20) of the short calls assigned to me very early leaving me short shares. The shares were unborrowable. E-Trade did a forced buy-in since they could not find borrowable shares (I was in correspondence with them and they knew I was aware of situaion and I had acted quickly when this happened 2 days earlier). All I had to do was exercise 2000 shares worth of my long calls and all was well with world (even though I would have lost the spread). I did not want to do that if I did not have to. I had just asked the question by email instead of picking up my phone - BIG MISTAKE. As I was watching the account, it was liquidated with them first selling short call positions, creating a 10K share long position - a 10 cent move would lose me 2x what the original trade risk was. I also had a long/short DNDN put position sold, a bull call spread sold and some MNTA stuff bought in. I assume the short calls (from my standpoint) were assigned by one of the short-bashing longs to force just short buy-ins. I in their minds probably became part of the short mafia, naked short the stock (even though I still had long calls as offset) or naked short calls. Jon