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DFRAI

08/16/10 11:36 AM

#101721 RE: jbog #101720

Jbog - I dont understand it with the huge put options

We understand that most options expire worthless and that the house benefits in 80% of cases, however the following scenarios stick in my mind

1. someone is selling puts - bulish outlook for the stock
2. someone is buying puts - fear of lower stock

Looking at the action - the premium is deteriorating which indicates to my untrained eye that someone is selling puts - bulish for the stock outcome.