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

To: jluker who wrote (27638)	11/1/1997 7:13:00 PM
From: j g cordes	Read Replies (1) \| Respond to of 58727

Well John and Nemer... I don't agree, the company in this hypothetical case is in the position of not just trading its own shares in an open market but leveraging its unannounced news (which it knows will have a strong market impact). This is the essense of insider trading, isn't it? To trade with a priori knowledge, to trade with a card up your sleeve? Heck, if I were a contractor for IBM and they sent me a bid to investigate the feasability of buying a facility... it would be insider trading for me to act on that knowledge because it wasn't public. In this hypothetical case they're trading on the insider knowledge of 3.5 billion dollars... And John, how can you say that because the tobacco companies have been unethical that other companies acts are acceptable?

To: jluker who wrote (27638)	11/1/1997 7:21:00 PM
From: Peter Donohue	Read Replies (4) \| Respond to of 58727

To All Could anyone comment if this is bullish activity for CSCO. What side (Buy or Sell) of the options is the smart money?? Tues is earnings. CSCO closed friday 82 1/16 up 2 CBOE Most active call, put option series calls #4 cisco nov85 vol=2875 last = 2 1/2 up 15/16 puts #1 cisco nov70 vol=3895 last = 7/8 dn 1/8 I am interpreting all the put activity as protective puts in case they disappoint. If the market knew they were going to disappoint they would buy puts with a higher strike to maximize gains. The calls also, if they were selling calls because they knew the price was going down they would sell with a lower strike price. I would appreciate any insight from the experts on this thread. thanks in advance pd