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jdaasoc

02/18/04 11:37 PM

#206896 RE: Zeev Hed #206858

RE RMBS options

As a test of market makers desire to cover their butts on up side, a gave a small limit order yesterday for some short calls FEB 35 @ $0.65 which took about 1/2 hour to execute. At that, I got the feeling anything was possible today.

Even after a 9 pt runup to right at the money price is now only $0.85/0.95. I bought back at $0.65 and since I was making a trade bought some extra to be net long.

I sold some FEB 35 PUTS for $1.70 to $2.20 today after pocketing $6.75 on the short PUTs @ $30's and $2.75 on $ 25's sold yesterday.

I can't believe the interest in sub $30 PUT leaps today. some people got that bubble market mentality that RMBS not going down by just up.

I don't think I am going to be long RMBS after it hits any type of new 52 Week high in next few sessions. Way too much risk IMO.