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

To: Chris Stovin who wrote (898)	3/19/1998 6:24:00 AM
From: Porter Davis	Read Replies (1) \| Respond to of 1598

>> those puts you had would have worked today... Actually, that was the problem. I didn't have them, I was short them. The public was in buying cheap out-of-the-money puts, and even if I sold enough stock against them at the time, when the stock drops $20 you are nowhere near protected enough. The public was buying both puts and calls, and when you're short premium on both sides, you're forced into buying stock on the way up and selling it on the way down, which obviously is the least preferred position. This is the down-side of being a specialist--you have to take the other side of the order-flow. And yes, the $39K was a loss. If my post last night seemed a little intemperate, I apologise. I wasn't in the best of moods. But the sun's coming up, the birds are singing, I've marked-to-market, and today's another day. (Slept like a baby, too; thirty minutes of sleeping, 30 minutes of crying). Happy trading. Porter

To: Chris Stovin who wrote (898)	3/19/1998 8:25:00 AM
From: notredame	Read Replies (1) \| Respond to of 1598

I read that Globe article as well. The last company that had huge potential with no revenues(lets not get into which one)has to be classified as strictly speculative. It would be nothing for GM, Ford, Daimler or any of those guys to write off $300MM to $500MM if they suddenly felt that BLD was not the way to go (I think some investors may forget that). I have not followed this stock, but I am drooling over the premiums. The last time I liked the premiums this much, people were jumping out of helicopters. Just trying to keep it in perspective.