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Technology Stocks : TLAB info? -- Ignore unavailable to you. Want to Upgrade?

To: CHIP HUNTER who wrote (1674)	11/20/1997 1:35:00 AM
From: Richard Karpel	Read Replies (1) \| Respond to of 7342

According to today's WSJ Interactive, Tellabs has "attracted a bear", or maybe it's just a bull who's nervous: >>>Tellabs appears to have attracted a bear, who has taken a synthetic short position in the maker of telecommunications products. The position could be used to offset the risk in an existing position, but that isn't known. On the surface, the sale of the December 50 call and the purchase of the December 50 put is the synthetic equivalent of a short-stock position. If the price of Tellabs stock decreases, the value of the puts will increase. The puts were likely bought with the money the trader received from selling the calls. The calls are down 3/8 at 4 on volume of 2,200 contracts, compared with open interest of 482 contracts. The puts are up 3/8 at 2 1/4 on volume of 2,240 contracts, compared with open interest of 836 contracts.<<< I don't know about you, but this options stuff is too complex for my taste.