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 : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: kfdkfd who wrote (27489)	2/6/1999 6:45:00 AM
From: JDN	Respond to of 31646

Dear Kevin: Isnt that incredible? I sure would like to understand it. Must be some kind of hedge or something. No one in their right mind, I would think, would short this stock at this moment in time. Well, if they have great numbers and great CC maybe this will help propel the stock even higher as they cover. JDN

To: kfdkfd who wrote (27489)	2/6/1999 9:31:00 AM
From: Rocket Red	Respond to of 31646

Kevin F.Durkin Just been lurking here awhile and enjoyed most all posts. With this kind of short position that is an indication that the stock has peaked for now and will soon come down.These guys short for a reason. Just my thoughts. PS Check out Cmec anf do some DD on there YKS Products. Big Rumours floating around that Yahoo is in Talks With them also other Internet Giants. OR Just Watch it. Cheers and Good luck with Tava.

To: kfdkfd who wrote (27489)	2/6/1999 5:12:00 PM
From: Karl Drobnic	Read Replies (2) \| Respond to of 31646

Open interest in all calls is 5,325. That is equal to 532,500 shares. So that may explain some of the short interest. Note that August '98 was about the time TAVA options began to trade. So we can look at it this way. Suppose lots of TAVA investors have decided to write covered calls against their long stock positions. That forces the specialists to be long the calls. They need to hedge their positions. One way is to sell puts. But there just aren't very many open puts. Another way to hedge is to short shares in various ratios to maintain a "delta neutral" position, the math of which is complex, but which locks in a small profit if followed to the last decimal place. So to the extent that the public is writing covered calls (a tactic I've encouraged), specialists may be forced into shorting shares to maintain an orderly options market. Thus, this would not be a "short attack" in the making, but an orderly process working itself out.