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Option trade by: Doctor_Of_Value Long-Term Sentiment: Strong Buy 11/11/05 01:19 pm Msg: 88753 of 88754 One possible explanation for the 100K blocks is that a large investor is buying huge amounts of January and April $7.50 call options from the option market maker. The MM then buys the stock to have available to sell at $7.50 when the calls are exercised. The market maker buys 100K at $10.80 and sells the calls at $4.30. In April, he sells the stock at $7.50 for a $1.00 per share profit. It is my opinion that these option trades and large share blocks are connected in this fashion. The good news is that someone or some institution is willing to pay $11.80 for the added leverage gained by going with the calls instead of just buying the stock. That is extremely bullish. Trades like these are only done based on very solid information. I just wish Ken Lowe would share this information with me. I don`t feel that I am being included in the club. Please Ken, I have paid my dues! |
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| aus der Diskussion: | SigmaDesign - kurz vor break des ATH |
| Autor (Datum des Eintrages): | amorphis (11.11.05 19:39:45) |
| Beitrag: | 585 von 4,073 (ID:18759883) |
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