|
PureBytes Links
Trading Reference Links
|
They have rolling like crazy all week. Look at O.I. shift.
-----Original Message-----
From: Ira Tunik [mailto:irat@xxxxxxxxx]
Sent: Wednesday, March 14, 2001 5:20 PM
To: realtraders@xxxxxxxxxxxxxxx
Subject: Re: [RT] GEN: Novice Notice
Many of the funds won't roll this time because they won't want to have a
lot of
these stocks show up on there quarterly reports. They will just exercise
the
puts and show sales at much higher prices.
"Jacobson, Alex" wrote:
> or they would roll them .. which is why there is so much volume during
> expiration week. The rolls occur /// generally // either during the week
> before or during the first couple of days of expiration, but they can
occur
> right up until MOC. You'll know a day after the rolls occur because the
> open interest simply rolls as well.
>
> -----Original Message-----
> From: Ira Tunik [mailto:irat@xxxxxxxxx]
> Sent: Wednesday, March 14, 2001 5:08 PM
> To: realtraders@xxxxxxxxxxxxxxx
> Subject: Re: [RT] GEN: Novice Notice
>
> Only two things can occur with options. The expire worthless or they are
> closed
> out and exercised. If a fund wanted to protect a position in CSCO and had
> bought the CSCO March puts they can either close them out or exercise
them.
> If
> they close them out someone has to be a buyer. Right now there is an open
> interest of 67,409 puts at strike prices of 25 and higher. Another 36,000
> are
> at the 20 and 22.5 strike price. If exercised, that is at least 6 million
> shares that will come to market on Monday. Options are a zero sum game,
but
> the
> shorts in the puts either have to buy back there short positions or take
> stock
> when the puts are exercised. If the puts are sold then the buyer is
either
> closing out an open position or will buy stock to hedge that position. In
> that
> case the buyer will exercise the puts he purchased to get rid of the
stock.
> There would no effect if all the put options holders sold there puts to
> those
> that were short, but that doesn't happen. So until Friday you have the
> possibility for support of the stock if puts are sold and the buyers hedge
> buy
> purchasing stock and you have the possibility of a break in the stock if
the
> all
> that stock comes to market at the same time. You will not get one extreme
> or
> the other, but something in between will evolve.
>
> Don Thompson wrote:
>
> > Ira,
> >
> > So if these people are the insitutions, then the potential exists for a
> fair
> > amount movement.. The third situation is, if they do nothing into
> > expiration, but that is stupid if they are sitting on a fair amount of
> > value.
> >
> > But if they decide to exercise: Why is this dumping stock on to the
> market?
> > I just have a hard time getting the role of the
> > market maker and the market they service.
> >
> > The good Doctor says about 80% of the option business is just fluff or
> some
> > kind of offsetting, because he says, or I interpret that the
> > PC ratios published by the CBOE are just a couple of grain of salt.
> >
> > So why is this going to be a big deal?
> >
> > Ira wrote:
> > > right now the most important thing is whether the holders of deep puts
> > decide
> > > to exercise and dump more stock on the markets or if they decide to
> sell
> > the
> > > puts and force the buyers to purchase stock.
> > >
> >
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
------------------------ Yahoo! Groups Sponsor ---------------------~-~>
Make good on the promise you made at graduation to keep
in touch. Classmates.com has over 14 million registered
high school alumni--chances are you'll find your friends!
http://us.click.yahoo.com/l3joGB/DMUCAA/4ihDAA/zf_UlB/TM
---------------------------------------------------------------------_->
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|