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.

Biotech / Medical : VVUS: VIVUS INC. (NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Curtis Frazier who wrote (21140)	4/21/1999 11:57:00 PM
From: RWS	Read Replies (1) \| Respond to of 23519

Vivus has no say whatsoever in whether options are traded on its stock. It is the decision of the exchange whether or not to trade options in any stock. RWS

To: Curtis Frazier who wrote (21140)	4/22/1999 12:03:00 AM
From: Joe Fang	Read Replies (1) \| Respond to of 23519

Curtis..take a look at this website, see where it says C Jun99 7.5 ? It has an OI (open interest) of 3049. That's 3049 open contracts for June strike $5 as of today. Each contract leverages 100 shares of stock (so we're looking at 30490). Two implications: 1. A large call (betting that stock closes higher than 5) open interest is a "contrarian" indicator to institutional traders..."since most contract buyers are retail (the least in the know), and hence, the stock price is likely to close below or at 5 in June. 2. These call options serve as a hedge for short sellers (in case VVUS shoots up and this would provide an off setting effect on their loss (from the short position). So yes, there is interest in VVUS options, either has a hedging or a speculating tool even if the stock is traded to a very low level. JOE edreyfus.com