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Technology Stocks : Identix (IDNX) -- Ignore unavailable to you. Want to Upgrade?

To: brad greene who wrote (12700)	3/12/1999 10:57:00 AM
From: R. Jaynes	Read Replies (1) \| Respond to of 26039

Brad, You're on. You said you have seen this kind of 4 o'clock activity before and it was a good omen. Which company are you talking about, what time frame, and what was the result? Come on, back up your claim with some details! Rick

To: brad greene who wrote (12700)	3/12/1999 12:44:00 PM
From: Night Writer	Read Replies (1) \| Respond to of 26039

bg, Let's look at some of the possibilities on the 400 call option position. That is a $2,500 position. Maybe someone is betting the stock goes up by buying calls. $2,500 is not a lot of money to some pure option players. There is the possibility that these options could get to $1. At that point look for a 400 sale for $40,000. Not a bad play! $37,500 less commission profit versus a $2,500 loss. Some sophisticated option players use screening programs looking for a number of option plays. They then select several stocks to take option positions on. Often the calls are purchased with money from selling put positions on other stocks. Positions not working out well are retired quickly to minimize losses. Those positions working out well are retained. The leverage on good positions make up for small losses on bad positions. Once a stock in on the screen with a past profit, the player will return to the well several times looking for another profitable replay when the conditions are right. That is a tough fast moving speculation game. A gap up or down on a stock can make their month, or hurt their year. Most players are using real time computer screens. They also have stock alert services with pagers and cell phones. They pay a good buck for these services. Not my cup of tea. Maybe someone owns 40,000 shares and is trying to make some money by selling covered calls. I write options when the option premium is good and the strike price is above my purchase price. I am also aware that writing covered calls is a short position on a stock. The story here is simple. Make a few bucks because the stock isn't going to hit $10, or $10 is his target price anyway. If the 400 calls were sold. I would guess a stock holder is making money selling covered calls at his target price. I'm still kicking myself for not selling the $10 call when it was over a $1. I often write covered calls when buying some stocks to reduce the cost. If the stock is called in two or three months, I made a nice profit. Sometimes, I leave money on the table doing this, and I do cry on the way to the bank. I take it no 40,000 block was purchased lately. I hope you are right about the 400 call option. I still own a good position in IDX. I'm not happy with it right now, but that's life. NW PS It's only $2,500. You gain or lose that much every time IDX moves a 1/4. Why don't you piggy back the call player? His profile is so high you could imitate his moves.