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Technology Stocks : INVX Innovex Comdex Winner !! -- Ignore unavailable to you. Want to Upgrade?

To: Kurthend who wrote (2483)	5/21/1998 12:33:00 AM
From: Mark Oliver	Read Replies (3) \| Respond to of 3029

Kurt, if you click the link I put on my last post, you'll get an options table. It shows today, 669 June 20 Puts traded today. That's a pretty weird trade. It's a lot. It could mean anything. For one, if you are sure the stock is going up, you sell puts and keep the premium. If it goes down, someone is agreeing to pay around 19 1/8 as I think many of them traded around 7/8's. Depending on your feeling, 19 1/8 may seem like a good price. Some companies even use puts to buy back shares. On the other hand, it also means that someone has inside information that the stock is in trouble and they expect it to go down. I believe they would have to be pretty sure though as it's safer to buy at the money options. They cost more, but they pay better. But if you are really sure, you'll get more leverage buying puts that are out of the money. These options won't make any money until the stock falls below 19. I'm sure there are other scenarios to build, but what's the point. Lets keep a watch and see what comes. The fact that they are all concentrated at one strike in one month makes it unclear to me. Regards, Mark