Discussion in 'Options' started by aphexcoil, Oct 16, 2002.
Seems like a lot of people are betting AOL is going to be a penny stock!
thanks, aphie !
Or someone that wants to buy 80,000 shares of stock. And in the meantime is using the cash from the sale of the puts to hide some of the losses from the last qtr or the last year. Or it could be somebody hedging a short stock position. Or it could be the company itself buying back stock. Dell does that all the time. They sell the puts and book the revenue. Means nothing.
You're forgetting the fact that AOL's 57.6kbps business model is slowly eroding. Even if they jump to broadband, they've got to pay higher access fees to the cable companies to make it happen. Their advertising revenues have taken a wacking and Ted Turner is pissed with Case.
I'm betting AOL is going the way of SUNW.
You better pray your hedge holds if you want to play that game ...
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