The most popular call is HJQEA 300 Jun 08. It costs 2.85. That predicts a price of
302.85 in June. If you buy the stock today you will be 5% ahead in June and free to hold
for a higher price. If you buy the call and the stock goes to 302.35 the call may not go
up enough to make a profit but it will expire. I think some one was asleep in Boolean
Algegra class when this problem was discussed.

What I am saying/wondering is how do you know if the heavy call position that you are
referring to, are bought or SOLD calls? Could it be possible that if a lot of shares are
out there, the open interest in the call position is from SOLD calls. Either covered or
naked. Is this possible?

what you talking about willis? The open interst for the calls is alot higher than the
open interest for the puts.

The put call ratio may be miss leading...How can you be sure that those calls are not
covered calls?

Last edited on: 05-08-2008 10:46 pm

I was right about apple, DE, ATW, and about shorting AIG. Now lets look at FSLR. Under
278 it is screaming buy. I took a look at the options, and there are hardly any puts
compared to the calls. Most of the May call volume is for the 287 strike. Oil is going
up and for some reason FSLR has lagged, watch it pop soon.

Last edited on: 05-08-2008 09:21 pm