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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: stan_hughes who wrote (844)	8/30/2007 9:10:02 PM
From: bruiser98	Read Replies (1) \| Respond to of 71456

When will the 12 million SPY shares hit the market?

To: stan_hughes who wrote (844)	8/31/2007 6:11:06 AM
From: Real Man	Read Replies (1) \| Respond to of 71456

Hey, you get no extra premium for selling deep in the money options, but you do get interest. Deep in the money options are really like costly futures. Someone indicated there was a put volume as well (deep in the money). So, you short deep in the money puts and deep in the money calls for a market- neutral position, and borrow the cash. Only an entity with low enough margin requirements could do it. However, someone also had to buy those puts and calls. So... Someone just borrowed some money from someone else using the options market, a reasonable assumption given the credit crunch. Moreover, I think... if you sell the same amount of deep in the money puts and calls for a neutral position, not only you get the money, you also pocket the interest on the money you borrowed. A lot of interest on multi-billion dollar position. Am I wrong on that? -g-

To: stan_hughes who wrote (844)	8/31/2007 6:33:37 AM
From: Real Man	Respond to of 71456

SP is the most liquid contract, so... it only makes sense to use it for borrowing purposes. The only problem is all that cash needs to be returned by expiration, or else... -ggg-