C-Cube Message Board - Msg: 1428921

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Technology Stocks : C-Cube

CUBE 36.52

+0.3%

Dec 12 9:30 AM EST

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To: Jerry String who wrote (15592)	5/18/1997 8:03:00 PM
From: marion salerni	of 50808

I'm not sure why you think the shorts would want to close the stock at the nearest strike. My theory is that the big institutions and market makers SELL puts and calls. When you have active calls and puts, its in the interest of these guys to close a stock at the strike price. The option will go out worthless and they'll collect all that premium. The big boys who sell the puts and calls are also able to manipulate the stock in the short run to close near the strike price. I don't know why shorts would do this. The little guy (joe public) are the buyers and usually lose 90% of the time. Look at IBM's friday's close- 170 on the nose. And those options were extremely active recently. Also Intel (155). MSFT (close=115 & change).

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