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There is definably something wrong here.
Notice that both the bid and the ask for CLTCC are lower than for
CCC. CLTCC defiantly is for more than 100 shares as described at <A
href="">http://www.cboe.com/common/pageviewer.asp?file=02-454.doc&dir=ttstocksm&head=stock%20splits%20%26%20mergers&sec=5
Also notice that the 15 strike is the only place in the chain that this is
occurring.
Either the quote is completely wrong or CCC is for
more than 100 shares.
Good luck and good trading,
Ray Raffurty
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
Kent
Rollins
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Sunday, March 09, 2003 2:03
PM
Subject: Re: [RT] This Week's Most
Unusual Covered Call
Here's a list showing the
non-conforming:
<A
href="">http://bigcharts.marketwatch.com/quickchart/options.asp?symb=c&sid=117685&time=8
Kent
----- Original Message -----
From: <A
title=r.raffurty@xxxxxxxx href="">Ray Raffurty
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Cc: <A title=MedianLine@xxxxxxxxxxxxxxx
href="">MedianLine@xxxxxxxxxxxxxxx
Sent: Saturday, March 08, 2003 6:54 AM
Subject: Re: [RT] This Week's Most Unusual Covered
Call
Hi John,
This trade has me bothered, it should not
happen. See the attached chart. I'm wondering if it is for 100
shares. C has been very acquisitive lately and it is possible that CCC
includes additional shares from an acquisition. I checked the CBOE <A
href="">http://www.cboe.com/search/searchSite.asp?adhoc=true&word=Citigroup%202003 site
and could not find a smoking gun that would explain this but I think you
should investigate it further with your broker.
The CCC is a correct symbol for calls
representing 100 shares at $15 and I would expect to see nonconforming
contracts to have a symbol like CLTCC but mistakes do happen. I hope I'm
wrong, but if I'm correct, you are not fully covered and you will be
exercised. In that case you would be short the difference in
shares. You would then need to buy the shares to cover the short.
Of course you can buy the shares now to be fully covered but that will
screw your $2 profit.
Again I hope I'm wrong but I've seen it happen
before. Let me know because it could be a great trade and we should all
get some of it.
Good luck and good trading,
Ray Raffurty
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
John Cappello
To: <A
title=Realtraders@xxxxxxxxxxxxxxx
href="">Realtraders@xxxxxxxxxxxxxxx
Cc: <A title=MedianLine@xxxxxxxxxxxxxxx
href="">MedianLine@xxxxxxxxxxxxxxx
Sent: Saturday, March 08, 2003 12:02
AM
Subject: [RT] This Week's Most Unusual
Covered Call
I have not seen this before most likely because I was
not looking. But this week I was checking out price discrepancies
between Calls and underlying price of stock.I found Citigroup
[C] traded around $33.90 and the Mar. Call with a strike price of $15
had a bid of $20.90.[makes my cost $33.90-$20.90=$13. I sold the Call
first and then bought the stock. The net effect is that if C does not
tumble from $33 to under $15 in 10 days, I will effectively make $2 per
share when I am called out on 3/21/03.Just thought I would share
this technique with you. If the option were further out, I do not think
I would have done it.JohnTo unsubscribe from
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