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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (96857)	2/15/2008 8:05:07 PM
From: GVTucker	Read Replies (1) \| Respond to of 206326

John, RE: Are there also prohibitions on bearish option plays (buying puts or selling calls)? In this particular instance I'm not sure, but almost always in a PIPE offering the docs prohibit any position that would benefit from a decline in the shares. Often ethical hedge funds (and yes, most of them ARE ethical) will short an index (even creating a synthetic index to short) to partially hedge the position. In the particular case of LINE, I know for sure that a majority of the funds that bought into the PIPE did so because they liked the units and didn't hedge their position at all.