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Technology Stocks : Avant (AVNT) -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (1284)	10/29/1997 7:43:00 PM
From: PMylnar	Read Replies (1) \| Respond to of 3441

AVNT/Puts. It looks as if the option buyer came in when the stock was 30 1/2. The put seller sold him/her the contracts and went out and shorted AVNT stock to hedge his position. Given that the stock traded through the quote on the way down, I'd guess that the option seller was indifferent as to price in hedging his position so long as his average was within the option premium that he sold. (ie. AVNT stock at 30.5, sell Nov 30's at 3.5, go out and short an equal amount of AVNT anywhere above $27 and you've made money.) Given that the stock opened at $30.5/s, got as low as $27/s and closed at 28.5/s, wouldn't the puts rise in value? Maybe my logic is all messed up. Any thoughts?