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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: tom pope who wrote (5863)	1/10/1999 11:35:00 AM
From: AlienTech	Respond to of 43080

>>(Another point, that AT probably knows the answer to: when a large investor buys a massive amount of puts, doesn't the house writing the puts short the stock to cover itself? So it might be possible to force short selling by arranging a huge put transaction. Are there position limits in options as there are in futures? )<< They dont need to now :> They can sell the AMZN puts and buy the DOT puts to hedge and then they can short YHOOO just in case their hedge needs more hedging and then they can go MACR and BVSN in case they want to stay market neutral. But have you seen the premiums on AMZN puts? its like 20% a month, I was looking at the Leaps which had get this almost 60%-80% the value of the stock itself. I mean its cheaper to buy the stock on margin (if you can get margin) than the leaps for those. But I think the smart MM would just take the massive money for the puts and take it to the bank and hope the stock keeps on going and going and going.