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Technology Stocks : Dell Technologies Inc.
DELL 138.260.0%11:58 AM EST
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To: Chuzzlewit who wrote (72947)10/19/1998 3:45:00 PM
From: Eddie Kim  Read Replies (1) of 176387
 
All I asked is for somebody to provide the motive in the form of demonstrating how it could be done profitably. Nobody has been able to demonstrate this to me.

I just don't understand why you keep writing this. If we can agree that al least the majority of options expire worthless then someone is making money. Furthmore if a large firm buy calls and sell puts..THEn it is VERY profitable if the STOCK goes up. remember the market MM is not in a vacuum..if he starts to buy heavily so will others....thus pushing the stock either further. he can then sell his calls and buy back his puts...and slowly sell of his shares. Seems very profitable to me!

Example:

I've been watching this stock for a while. Trading at ~$13, but it appeared that someone wanted it below $12.5 (option strike price). I noticed than someone (it could have been several people) would buy 5,000 shares, which did not really move the ask up any, and then sell 1000 share blocks one at a time which would drive the bid down 1/4. I noticed this pattern over and over until the person(s) quit due to very strong support at $13. Once the person stopped doing this the stock popped back up.

This is only a theory of mine, but I think I'm more right than wrong.
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