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To: Land_Lubber who wrote (42584)	1/29/1999 5:07:00 PM
From: JSI	Respond to of 53903

For those who don't trade in options, could you elaborate? Thanks, JSI

To: Land_Lubber who wrote (42584)	1/29/1999 5:10:00 PM
From: J. P.	Respond to of 53903

Land_Lubber, Do you think those puts fired off at the bid or the ask? Thanks

To: Land_Lubber who wrote (42584)	1/29/1999 5:57:00 PM
From: Chas	Respond to of 53903

I wish it were me who bought those.... good trading.

To: Land_Lubber who wrote (42584)	1/29/1999 6:00:00 PM
From: John Graybill	Read Replies (1) \| Respond to of 53903

My bet is that it was a spread -- he bought the 75's and sold the 65's. He has the potential to make ten bucks at expiration for a cost of about three bucks. 72 and below is a winner (the 75's will be worth $3 or more). Possible corollary: If he bought them at the same time, he's betting that it's going down but he's not expecting it to go down immediately. In fact, this kind of play keeps you from looking from a chump even if the stock continues up for a little while. Both options will lose some value at the same time, and getting out of the position isn't a total bust. (A possibility that I have dismissed is that it takes a little less capital to open a spread at $3 rather than buying the 75 first at $3.75 and then selling the 65 at 7/8. Reason: If you have $300K to spend on an out-of-the-money option spread, then you have $375K too. This ain't an advance on a VISA card we're talking about.) Good catch! Worth keeping in mind.

To: Land_Lubber who wrote (42584)	2/3/1999 9:46:00 PM
From: John Graybill	Read Replies (1) \| Respond to of 53903

If "Mister Spread" didn't unwind his kilo-contract at the late lows yesterday or (yep I'm gonna say it again) at the 10:30 low today, he got killed by today's close. Looks like yesterday's closing price for the 65 puts was 1 1/2, and the 75's were 5. Unwinding would have yielded 3 1/2, for a profit of 5/8 per share over his 2 7/8 purchase price, about $60K. He would have done better than that at the lows yesterday, of course, unwinding for as much as four bucks and change. Today's closing price for Feb 65 puts are 5/8 x 3/4; Feb 75 puts are 2 11/16 x 2 3/4; unwinding would get him just under two bucks a contract. Ouch.