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Technology Stocks : Dell Technologies Inc.

DELL 129.98

-6.2%

Dec 12 9:30 AM EST

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To: Chuzzlewit who wrote (72864)	10/19/1998 9:41:00 AM
From: Eddie Kim	Read Replies (2) of 176387

Chuzzlewit, We always end up here. You make it sound that since no one can explain it to you then it could not possible happen. The people who probably do know probably couldn't care less what you think, or most likely, they want you to continue to think that they DON'T manipulate the stocks to their advantage. Lets say for example that DELL is trading at $67 and I'm a big firm. I sell 2000 65 calls several weeks in advance. I would pull in $1.2 million if the premium was at $6 (reasonable for DELL), right? Let's say then I buy 60 puts as well. Let's say the premium is $3. That will cost me $0.6 million if I buy 2000 puts. Thus already I'm ahead $0.6 million. Now it would be to my GREAT advantage if DELL goes down, right? My calls that i wrote would expire worthless (pocket $1.2 million) and my puts would become more valuable (perhaps the premium going to $6 if DELL falls to $58 or so given several more weeks). If this occurs than I'm about $2 million dollars richer. The question of course is whether a large firm can manipulate a stock like this? The big oneS can given no run-up or explosion. Remember we don't play on the same field as they. They can control the spread. They know the orders in place BEFORE they get executed. hey have "inside" news. They can trade directly. They have tons of Millions in cash, and they probably have not 4000 options on the line but more like 40,000 option on the line. If you don't believe just take a look at how one company can drag or tank the DOW with their BUY/SELL Programs. Heck, they don't need buy programs or computers to this and the +50/-50 don't mean a thing to them. If they want to sell or buy they just send 30 runners to the trading posts all at once. They are big enough to do this. But the beauty of it is that they probably only do a fraction of the work. Momentum traders probably do most of the brunt work for them to drag or pop the DOW.

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