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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: hal jordan who wrote (4373)	5/15/1998 5:33:00 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

Hal, I bought October puts last Monday when I couldn't get any more stock to short. The problem is the huge premium the Market Makers want. Right now the October 110's are $28. With today's close of almost $90, that's a $8 premium. Otherwise Amzn has to come down to $82, just to start to be in the money. If you like to gamble, I'd say its still a good play. Now, why do you think it's so hard to get shares to short? Because all the longs love it so much they won't part with it? Hell no! The actual float is thin but will improve substantially June 1. Morgan Stanley, remember them? They were the guys that Amzn paid a bundle too, for the junk money. You don't have to be a rocket scientist to figure out that they control a lot of shares. This is for a lot of reasons, but the one that pertains to this topic is to try and offer some security to their clients that bought the junk. Guess what? As of June1 they lose alot of their stranglehold. The point is, for all of you that have held in here short, you won't get the real payback until July. Glen, moving on with just a few $$? Please remember, if you shorted an ice-berg when it was way up north and sweated it out, then when it was going even more north bound, why would you get out soon. This ice-berg is going to melt, albeit, not as quick as we'd like.