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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Bald Man from Mars who wrote (31417)	8/23/1998 3:07:00 PM
From: Joseph G.	Read Replies (2) \| Respond to of 132070

Don't eat for a year? -g- sorry, can't help myself

To: Bald Man from Mars who wrote (31417)	8/23/1998 4:09:00 PM
From: The Perfect Hedge	Read Replies (1) \| Respond to of 132070

Do the option play that Mike recc's...I'm doing it.. He always offers a guarantee with every recc<g>... B

To: Bald Man from Mars who wrote (31417)	8/23/1998 5:15:00 PM
From: PaperChase	Read Replies (2) \| Respond to of 132070

Bald Man. The TLAB/CIEN merger is a pure gamble because noone knows what is going to happen. There aren't many variables to predict with a high degree of certainty what will happen next. This is why I have chosen strangles and straddles on these stock but I recognize these are damned expensive and highly speculative options plays Given your long and short equity positions you may want to consider option purchases (in ADDITION to the recommendations in other posts) that cap your losses. For example, if TLAB runs away to $80 because of a failed merger, you will need 3 contracts just to cap the losses in your TLAB short position. I wish I could tell you which way these stock will go. We don't really know how much pressure the TLAB president is getting from big TLAB shareholders over this CIENA deal. We also know that TLAB needs a foot in the door on DWDM technology. It is my GUESS now that TLAB will buy CIEN in a .75 to 1 offer. If it gets down to .50 to 1 (where we are now with stock prices) then TLAB would really lose face for screwing up the original valuation of CIEN. Remember this is a GUESS. Good luck.

To: Bald Man from Mars who wrote (31417)	8/24/1998 11:31:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Bald Man, You aren't going to repair that sort of damage with my 90/10 system. The IRS will eat a good portion of the loss, but you are still stuck with a bunch. It is no help now, so I hope you don't resent me stating the obvious: don't bet a lot to make a little. If you can, bet a little to make a lot. The problem with mug's games like risk arbitrage is the one out of ten that eats your lunch, not the 9 out of 10 where you make 2 or 3 points. Betting a little to make a lot is a sermon I've been preaching here for 2 years and I know that some consider me a guy who just doesn't like to risk money. And they are right. The stocks look a bit better this morning, but nothing close to repairing damage on that spread. Good Luck on the next trade, MB