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Minyan Mailbag: Jon Najarian

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Thx Dr. J!

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Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next article, written by Minyan Jon Najarian, with that very intent.

For more of Jon's work click here.


  • Cablevision (CVC) trading volume has heated up, with over 50,000 calls and puts changing hands as CVC falls 4.6% to $26.56. The catalyst for today's selloff is CVC jumping into the running for Adelphia with an astonishing $16.5 billion CASH bid, that's right, CASH, which as Yogi Bera says spends just like money! The out-the-money puts in CVC are moving up in value as CVC dives, but its the action in the way, way out-the-money puts, particularly the January 2007 10 puts that indicate the fact that this bid is scaring some CVC investors. Think about it folks, the Jan '07 10 puts are indeed disaster protection, but not the ones you'd pick if you were protecting your CVC stock holding. No, this sort of trade is similar to the trades we tracked in GM, where the bondholders were hedging by purchasing the way out-the-money puts as well.


  • DELL trades 2,400 calls versus 18,000 puts, but my dollar weighted numbers show just $4 traded on each put versus $1 on each call.


  • With Sprint (FON) trading $23.29 someone paid $.75 for the August - January 25 call spread. 15,000 of the Aug options were sold and 15,000 of the Jans were purchased.


  • A very nice rally in small cap stocks today is pushing the Russell 2000 (IWM) index up 1.08 to 123.39. I show both April & May puts trading actively, with the May 124 puts losing $1.50 to $3.10 (-32%) and the 121 puts losing $.85 to $1.85 as well.


No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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