05/05/2004

Q. how's the borrow on [Stock XYZ]?

Reply:
i've always heard brk/a is nearly unborrowable  .. . also has  no listed
options afaik .. . and if you trade otc options the  dealers will skin you
alive .. . pay you 10 vol if y'r a call writer

Reply:
i've heard the same ... and that's why the vol bid on calls is so low ...
dealer can't borrow it either

Reply:
i'm going to write an essay on this some time..  joe public thinks wall
st'ers are big swinging d--ks eager to take on risk.. in fact they'r
cowards, deathly afraid of any unhedgble risk.. and especially afraid of the
''risk manager'' who works in a cubicle down the hall .. and this is more
true than ever.. the average guy who opens a subway sandwich shop is taking
more risk, relative to assets, than a wall st dealer

Reply:
i couldn't agree with you more ... just this morning i was shown a straddle
market $0.40 below the screen bid -- ten minutes after i worked it myself
electronically, i got a phone call "oh, you got it done anyway?"