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Technology Stocks : Data Dimensions

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To: Pete Mason who wrote (564)4/9/1997 5:20:00 PM
From: Warren Gates   of 4571
 
Hi Pete, if you check the open option interest, the April 30 calls have the most, followed by the April 25 calls ... Since DDIM is easy to manipulate, the market makers are most likely trying to 'scare' these option holders into cashing out before their calls become worthless ... they do this by dropping the price in panic mode.

Options expiration is next week and based on the open interest, they'll try to keep the stock price nearer to 20 than 25.

Another trick they sometimes do is to move the stock price all over the place to give a semblance of volatility so high premiums on options can be justified. Then, near expiration, they let it stay in one place. Unless of course DDIM reports earnings, or a major $30K contract.
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