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Technology Stocks : INTEL TRADER

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To: Gersh Avery who wrote (2300)4/15/1998 9:35:00 AM
From: Jurgen Trautmann   of 11051
 
Gersh, there's a missing balance between mm's and private investors

writing options. As usual, I don't know numbers, but this seems to me being evident.

Thus mm's have a lot to lose while underlyings trend to do what the market was expecting - and LOGICALLY they try what they can to optimize, in our case (Intel) SELLING the stock (if necessary even shorting) so that call-owners can burn their contracts.

Nevertheless, I don't think that this is a winner-strategy - more a strategy for minimizing losses.

And, probably this is also causing more professionals to jump out of there windows than private gamblers use to do that.

Jury
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