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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (27629)	11/1/1997 1:45:00 PM
From: broken_cookie	Read Replies (1) \| Respond to of 58727

Jim, Thanks for the article. I agree with you about public disclosure of this type of trading. Naked positions should at least be mentioned as potential liabilities on the balance sheet. It doesn't seem that companies short calls -- based on the article. Sort of like Pete Rose betting on while managing the Reds. He shouldn't have bet at all, but if he bet to lose, he was a scumbag. Intc exposed to a billion dollars worth of stock with naked puts, interesting... That's a potential worse case loss (currently) of 250 milllion. And if the stock is put to Intel it would be reported as share buy back expense. The loss would be well hidden on the balance sheet. I remember from McMillan that the largest option positiion (short or long) any individual/organization/investment fund may own on any one stock is 8000 contracts. (Someone please correct me if this limit has been raised.)

To: j g cordes who wrote (27629)	11/1/1997 4:44:00 PM
From: Patrick Slevin	Read Replies (2) \| Respond to of 58727

I generally hold back from most conversations on this board.... ....I really only watch it for educational value. In this case, I will contribute this....I do speak with CEOs on occasion.....When XYZ company says they will buy back 5 million dollars worth of stock. They may go to Plaza and write 1000 puts, for example. Is this information withheld from investors? Of course not. They said they would buy back stock up to a certain point....if they attempt to do it by writing puts, so what?