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IRA .. re read Bob's question.. it was not about
being long calls and short stock as your post suggests.. while I agree with what
you said... it is not a perfect hedge. His question was.. if he wrote a
call on stock he had long would it take it out of the pool of the firm's ability
to loan...
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Ira Tunik
To: <A
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxxxxx>realtraders@xxxxxxxxxxxxxxx
Sent: Saturday, October 06, 2001 11:13
AM
Subject: Re: [RT] VERY HEAVY BLK activity
ON MSFT
Being long calls and short stock can be dangerous in that
instance. It is not a perfect hedge. If the stock is called it is
same day delivery and you have to go into the cash market to buy the stock and
it can be trading $10, $20 etc. higher then the bid and offer. Options
are 5 day delivery. I know of a case where this happened and a lot of
market makers lost an awful lot of money. It put some out of
business. So it always pays to know and understand the rules of the game
if you intend to play. Ira
"Dorothy K. Carter" wrote:
Selling calls give you the write to sell
the stock at a certain price in the future. most writes if exercised
are not exercised until closer to expiration. A married put would be
more equal to a short sell.As long as the stock is long in your
account it is considered covered on an option trade.. Brokerage firms
keep daily tabs on this.. In accts where I have hedged where they are long
stock and I want to go short I still have to call to get permission to
short........ On a rare occasion if stock is not avail like earlier
with KKD a firm can force you to cover if they can not borrow.. it does not
happen often but I have heard of it happening before...
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A href="mailto:bobrabcd@xxxxxxxxxxxxx";
title=bobrabcd@xxxxxxxxxxxxx>BobR
To: <A
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxxxxx>realtraders@xxxxxxxxxxxxxxx
Sent: Saturday, October 06, 2001 8:13
AM
Subject: Re: [RT] VERY HEAVY BLK
activity ON MSFT Suppose I wrote
some covered calls against a stock in my margin account, does that then
remove that number of shares from the "loan" pool for others to
short?
<BLOCKQUOTE dir=ltr
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Ira Tunik
To: <A
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxxxxx>realtraders@xxxxxxxxxxxxxxx
Sent: Friday, October 05, 2001
10:28 PM
Subject: Re: [RT] VERY HEAVY BLK
activity ON MSFT Try ratio back spreads for one or bear
spreads for another. In one case volatility is your friend and you
don't care where it moves as long as it moves far and fast. In the
other case you need a move down. Either will accommodate short
stock. There are numerous other strategies that can utilize short
stock, but this forum is not the place to discuss it. Ira
Lee Morris wrote:
<FONT
face=Arial>how would heavy option
plays tie into this?? could the aval loanable stock be getting sucked
up by the firms to hedge option activity??? if so what would that
option activity be
<FONT
size=-1>-----Original Message----- <FONT
face=Tahoma>From: Dorothy K. Carter [<A
href="mailto:dorothy.carter@xxxxxxxx";>mailto:dorothy.carter@xxxxxxxx]
Sent: Friday, October 05,
2001 8:19 PM <FONT
size=-1>To: realtraders@xxxxxxxxxxxxxxx
Subject: Re: [RT] VERY
HEAVY BLK activity ON MSFTThe average public
has to play by rules I layed out I believe.. The point
though was the list of stocks that were mentioned
which are very liquid widely held stocks...... so there
should not be a problem shorting those particular
stocks...... that was my point... Your comments don't point
to any reason why those stocks would not be able to be
shorted....... I can't speak for dealers or market
makers or specialists.. obviously they don't have to
deal with uptick rule....... the average investor does ...
though there has been talk about changing the uptick
rule.. I know hedge funds are pushing for that
change... So the back to the original question.... Do you
really believe that this last week there would be a time
when stocks like MSFT, INTC, ORCl etc could not
be shorted unless the stock was not available by
stock loan of the particular brokerage firm that this person
was inquiring?????? ----- Original Message
----- From: "Jacobson, Alex"
<AJacobson@xxxxxxxxxxxxxx> To:
<realtraders@xxxxxxxxxxxxxxx> Sent: Friday,
October 05, 2001 8:10 PM Subject: RE: [RT] VERY HEAVY
BLK activity ON MSFT
> No uptick for dealer hedge trades in OTC stocks.
The $5 rule is to make it >
marginable. Stock that can't be margined are, in fact,
shortable.....hard > for the general public .. but
very common overall. > >
-----Original Message----- > From: Dorothy Carter
[<A
href="mailto:dorothy.carter@xxxxxxxx";>mailto:dorothy.carter@xxxxxxxx]
> Sent: Friday, October 05, 2001 8:02 PM
> To: realtraders@xxxxxxxxxxxxxxx >
Subject: Re: [RT] VERY HEAVY BLK activity ON MSFT
> > > There are three
things to my knowledge that determine if a stock can be
> shorted.. the first requirement is most firms only
allow margin on stocks > north of $5..... then you
have to get authorization from your broker's stock
> loan dept. to short it.. thirdly you have to get an
uptick...... all the > the examples below fit
north of $5 and we have seen plenty of upticks this
> week... so the only remaining question would be if the
firm's stock loan had > stock to
loan.... I know of no other requirements for shorting stocks..
> enlighten me please if I've missed something...........
best, Dorothy > >
> > ----- Original Message -----
> From: "Jacobson, Alex"
<AJacobson@xxxxxxxxxxxxxx> > To:
<realtraders@xxxxxxxxxxxxxxx> > Sent: Friday,
October 05, 2001 7:50 PM > Subject: RE: [RT] VERY
HEAVY BLK activity ON MSFT > >
> It is not true. Other than tick
restrictions. If they became unshortable > for
any period the industry would have had to halt option trading.
> > -----Original Message-----
> From: John Nelson [<A
href="mailto:trader@xxxxxxxxxxxxxxx";>mailto:trader@xxxxxxxxxxxxxxx]
> Sent: Friday, October 05, 2001 7:37 PM
> To: realtraders@xxxxxxxxxxxxxxx >
Subject: RE: [RT] VERY HEAVY BLK activity ON MSFT
> > > At the Society of
Market Technicians meeting last evening one of the >
participants mentioned that several of the large popular stocks
(Intel, GE, > Mmicrosoft) were not
shortable during the trading day. No one would lend
> these major stocks for shorting and thus there was a
strong uptrend in the > E-Mini.
> > I'm curious as to what other people
observed... could this be true? Does it
> indicate a form of "manipulation" and an attempt to
move markets higher? > > --
John > > -----Original
Message----- > From: Dorothy Carter [<A
href="mailto:dorothy.carter@xxxxxxxx";>mailto:dorothy.carter@xxxxxxxx]
> Sent: Friday, October 05, 2001 11:16 AM
> To: realtraders@xxxxxxxxxxxxxxx >
Subject: Re: [RT] VERY HEAVY BLK activity ON MSFT
> > > I'm sure you
noticed that "they" were buying MSFT this morning trying
to > keep it up to create firm tone to get S & P
traders to cover shorts... now > softy below 57
again. Richard Ney was the person I'm most familiar with
who > is a big tracker of blks.. It takes a
while to get a feel for it and it does
> require a bit of intuition........ :-)
> > ----- Original Message -----
> From: BobR <<A
href="mailto:bobrabcd@xxxxxxxxxxxxx";>mailto:bobrabcd@xxxxxxxxxxxxx>
> To: realtraders@xxxxxxxxxxxxxxx <<A
href="mailto:realtraders@xxxxxxxxxxxxxxx";>mailto:realtraders@xxxxxxxxxxxxxxx>
> Sent: Friday, October 05, 2001 2:10 PM
> Subject: Re: [RT] VERY HEAVY BLK activity ON MSFT
> > That big block technique looks very
intriguing. One other rter used to > follow
them. Believe it was Gitanshu Buch. Right now we have
the kiss of > breadth going on in the Nasdaq.
It looks improved from this morning, but > the NDX
has been inching up as the issue and volume breadth has been
and > remains net negative. > View
for NYA looks even sicker. > >
bobr > > > -----
Original Message ----- > From: Dorothy K. Carter
<<A
href="mailto:dorothy.carter@xxxxxxxx";>mailto:dorothy.carter@xxxxxxxx>
> To: realtraders@xxxxxxxxxxxxxxx <<A
href="mailto:realtraders@xxxxxxxxxxxxxxx";>mailto:realtraders@xxxxxxxxxxxxxxx>
> Sent: Thursday, October 04, 2001 11:08 AM
> Subject: Re: [RT] VERY HEAVY BLK activity ON MSFT
> > USING MSFT data below.. note the
lowest of the blks is 57.. MSFT has dropped
> below the higher blk trades which will now become
resistance vs support.. so > once below
57 all the mutual funds that bot softy are under water... These
> stocks many are back up to 9/17 or pre 911 and the
specialists and market > makers will jump at the
chance to sell what they had to buy on the way
down > and then they will go short again...
I WILL CHECK AND SEE WHAT PRICES OF > BLKS IF ANY
ARE ON THE OTHERS... I BELIEVE I SENT CSCO EARLIER....
> > ----- Original Message -----
> From: BobR <<A
href="mailto:bobrabcd@xxxxxxxxxxxxx";>mailto:bobrabcd@xxxxxxxxxxxxx>
> To: realtraders@xxxxxxxxxxxxxxx <<A
href="mailto:realtraders@xxxxxxxxxxxxxxx";>mailto:realtraders@xxxxxxxxxxxxxxx>
> Sent: Thursday, October 04, 2001 2:02 PM
> Subject: Re: [RT] VERY HEAVY BLK activity ON MSFT
> > Dorothy, using the big block concept,
what do you see as the sell levels on >
these stocks? Thanks, bobr. >
> MSFT > INTC > QCOM
> CSCO > ORCL > AMGN
> > > ----- Original
Message ----- > From: Dorothy Carter <<A
href="mailto:dorothy.carter@xxxxxxxx";>mailto:dorothy.carter@xxxxxxxx>
> To: realtraders@xxxxxxxxxxxxxxx <<A
href="mailto:realtraders@xxxxxxxxxxxxxxx";>mailto:realtraders@xxxxxxxxxxxxxxx>
> Sent: Thursday, October 04, 2001 10:51 AM
> Subject: [RT] VERY HEAVY BLK activity ON MSFT
> > This tech rally is getting long in
the tooth.... > >
> Symbol(s)
N/BLK
&
Services Date
> > Use Page Up, Page Down,
+, -, or press Ù > >
--------------------------------------------------------------------------
-- > ---- > 1:34
DJ DJ Microsoft Corp (MSFT) Block: 194,700 Shrs At 57.80
> > 1:21 DJ DJ General Elec
(GE) Block: 287,000 Shrs At 38.35 >
> 1:21 DJ DJ Eli Lilly (LLY) Block: 250,000
Shrs At 79.00 > > 1:17
DJ DJ Barnes & Noble (BKS) Block: 275,000 Shrs At 38.00
> > 11:53 DJ DJ EDS Corp (EDS)
Block: 190,200 Shrs At 57.65 >
> 11:50 DJ DJ Microsoft Corp (MSFT) Block: 190,000
Shrs At 57.96 > > 11:50 DJ DJ
EDS Corp (EDS) Block: 190,200 Shrs At 57.65 >
> 11:42 DJ DJ EDS Corp (EDS) Block: 190,200 Shrs At
57.65 > > 11:41 DJ DJ
Microsoft Corp (MSFT) Blk: 250,000 Shrs At 57.00
> > 11:41 DJ DJ Financial SPDR F
(XLF) Blk: 667,500 Shrs At 25.43 >
> 11:28 DJ DJ Microsoft Corp (MSFT) Blk: 250,000
Shrs At 57.00 > > 11:13 DJ DJ
Qwest Communicat (Q) Blk: 627,200 Shrs At 16.45
> > 11:12 DJ DJ Amer Intl Group
(AIG) Blk: 200,000 Shrs At 79.25 >
> 10:57 DJ DJ Apt Invest & Mgm (AIV) Blk:
250,000 Shrs At 43.20 > >
10:57 DJ DJ Microsoft Corp (MSFT) Blk: 200,000 Shrs At 56.70
> > 10:56 DJ DJ SW Airlines (LUV)
Blk: 890,000 Shrs At 16.25 > >
10:49 DJ DJ Amgen (AMGN) Blk: 190,400 Shrs At 58.72
> > 10:38 DJ DJ Boeing Co (BA) Blk:
444,800 Shrs At 36.10 > >
10:38 DJ DJ Microsoft Corp (MSFT) Blk: 231,900 Shrs At 57.00
> > 10:32 DJ DJ Apt Invest &
Mgm (AIV) Block: 250,000 Shrs At 43.20 >
> 10:32 DJ DJ Amgen (AMGN) Block: 190,400 Shrs At
58.72 > > 10:32 DJ DJ
Microsoft Corp (MSFT) Block: 231,900 Shrs At 57.00
> > > >
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