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Global Crossing Ltd. (GLBC) Message Board

  • doublecanister22 doublecanister22 Jun 29, 2005 2:10 PM Flag

    Dec Options...

    Ladies and Gents,

    The Pros are buying the Dec puts and pummeling the Dec call vol. Re-establishing and/or extending their short position...Huge June option expiration....Hey Gearhead GATR...Clearing firm is still charging a criminal 41% for shorting the stock!

    Carlos "not-so" Slim has been very quiet. I heard he is twirling the baton while wearing a big Red Shako Hat during the Mexican-American Holiday parade.

    Goodluck to all!

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    • buying of the puts does not indicate increase or decrease in the short position.

      there are as many call options bought as put options for december. it's a volatility trade.

      if you assume someone long is buying puts, they are locking in gains, or someone short buying calls is trying to limit their losses (since they have no gains because ezgen was wrong in his analysis).

      • 1 Reply to anteup9
      • Ante,

        Oh you are correct...it doesn't necessarily mean an increase in a short position....but oh...in this case...it does indeed! Let's say..for example...you want to be short the stock....and you will get charged 41% to short the stock, potential buy-in risk, reg-sho exposure....so..instead you buy the puts and short the call...look at the conversions and reversals...that tells you....every day 'they' add to the position...mutual funds are banging out this reversal and the shorts are getting to keep their shorts....sounds like the only one in a jam is the option market makers...(what to do) I chuckle when I see people imploring long holders to "not lend out there stock"- make some money ...synthetic stock!

        I bet Carlos 'not-so' Slim is loaning out his stock for a tidy sum! Of course with his fedora pulled way down while he sips in the sun.

        Good luck Gents!