Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (75290)	4/17/2007 4:40:54 PM
From: saveslivesbyday	Respond to of 94695

maybe the big boyz own all those puts If I were a big boyz, I would be accumulating puts as the market rises, then sell em as they let it plunge. I'm just a little boyz, but that's what I'm doing.

To: MythMan who wrote (75290)	4/17/2007 5:43:07 PM
From: Real Man	Respond to of 94695

That's unlikely, cause then it's the small boyz who are shorting puts, and that they can't do with that kind of margin. Of course, the bigger specs (hedge funds) could be doing it against the big boyz. I think small boyz just bought June crash puts after Feb., 27, and these puts will expire worthless, a most likely scenario. -g-

To: MythMan who wrote (75290)	4/18/2007 4:05:27 PM
From: Real Man	Respond to of 94695

Actually, who knows who owns these puts, probably not J6P. Looking at JPM profits this quarter, and their monkey AG speeches back in February, looks like they did own puts back then. Also, hedge funds are big into shorting volativity through puts. If they do, dealers must be long puts. I suspect dealers were short April puts, though -g-. But the hedgies could have done some time spread trades - short longer term puts, long shorter term puts, thus financing their short term puts by shorting long term puts. If so, by tanking the markets now, JPM would make a killing both ways -g- Hedge funds are more likely than da big boyz to enter exotic long-short options trades, since they don't have access to unlimited accounts. It is certainly most weird and not very typical at all to see such put buying as the market torpedoes higher.