Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : ABTX - Agribiotech -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (4457)	8/21/1998 8:14:00 PM
From: John S. Baker	Read Replies (1) \| Respond to of 8359

Let's see.... I don't have access to Time-and-Sales for the ABTX options, but we can tell that 3450 August 30's traded today ... and the last sale was at 14 1/8. Today is the day that options close out. So buy 345,000 shares of ABTX at 15 3/4 and match them against 3450 puts at 14 1/8. Total cash outlay is $10,306,875. But the puts when closed out (this weekend) are worth 3450 x $30 = $10,350,000. Net profit for the single-day arbitrage is $43,125 ... less commissions, which could be negligible if one has a seat on the CBOE and is able to trade over the interconnect (I forget the name of that MM right now). Would have worked even better if the shares had been bought at 15 1/2 (ABTX didn't go above 15 1/2 until after 3 PM). And if one has good credit, one probably doesn't even need to write a check for that $10,350,000 either! Wish I were rich <grin>. JSb.