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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (5127)	4/21/1999 11:20:00 AM
From: zx	Respond to of 6021

off topic. i have read that thread a few times in the past. the guy who used to like ascend and compaq and amd used to give lessons on this thread among others. he was pretty good but he left si. forgot his name. i have seen many good traders in the past and it makes me sad.

To: AlienTech who wrote (5127)	4/21/1999 3:28:00 PM
From: Just_Observing	Read Replies (1) \| Respond to of 6021

1000 puts June 20s traded for 9 3/8 at the ask Someone bought 1000 June 20 puts on NETA for 9 3/8. It could be to cover a short position since the open interest is 1350. However, it may also be a bearish stance. But it's a very inefficient way to do that. One can do the same with buying June 15 puts for 4 5/8 (ask). Pay a quarter more and risk $5 less with the same downside profit potential (PP). Or the June 12.5 puts for 2 13/16 (ask). Here you are getting the same downside PP with much less capital at stake. So why risk 9 3/8 when you get the same play on the downside for 2 13/16? The only reasonable solution is that someone sold naked puts and has to buy them back. Tomorrow the open interest in the June 20 puts should be down to 350. Otherwise buying of such deep in the money puts is very bearish for NETA (not to mention illogical). BTW, Jan 2001 15 calls trading for 4 1/4 to 4 1/2. Very low spread due to relatively high volume of 382.