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

To: Exacctnt who wrote (33584)	10/8/1998 5:56:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Bob, I think the circumstances are different, but, yes, I did play the Ciena/Tellabs mispricing with long calls on both. First time I ever lost on both sides of a paired trade. <G> I can laugh because I'd made enough on Ciena puts before that time to make the loss a sting, not a blow. But these things are tricky. Mispricing can mean one of two things: 1. Somebody expects a better bid from either the acquirer or someone else, or 2. Somebody expects one company of the other to blow up before the deal is done. I rarely play risk arbitrage, as this is called, because it is a bet a lot to gain a little game. If you do play it, please use options instead of stock. And don't be as dumb with them as I was on Ciena. MB