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.

Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: Schmoople who wrote (4236)	10/10/1998 9:15:00 PM
From: gbh	Respond to of 12623

Those 600 options would represent 60,000 shares short. I would assume no individual has this position, but perhaps a hedge fund. Maybe they were smart/lucky enough to have shorted this disaster at 90. Now they are looking at a roughly $4.8M profit. Now the only way this pitiful stock is going to rally any time soon is a buyout, or massive short covering. At some point the shorts must cover. So this guy has essentially locked in a $4.5M profit (the 75 pt. profit is the stock rises to 15) to put off the tax burden until next year, or maybe even longer. Why not put up $7500 each month for some cheap insurance against a big rally? Remember, each point up/down represents $60K. I personally think the stock falls further due to tax loss selling this month and next. So the guy still stands to make $52.5K per point to the downside. I would certainly insure this HUGE win in some way if it were mine. Wouldn't you? Of course, I could be wrong, and its just some idiot speculator. Perhaps someone with a truck... Gary