Jim's Nasdaq100 Special as a basket. Message Board

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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket.

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To: Matthew L. Jones who wrote (1360)	10/17/1999 2:15:00 PM
From: jjs_ynot	Read Replies (1) of 2103

Matt, I know several Market Makers on the Philly Exchange. They work hard to be delta-neutral and gamma-positive (price movement insensitive) using a combination of options and stocks. Most deal in one or two stocks. However, as the time premium decays they often have to readjust. This adjustment may account for some of the price movements approaching expiration. Also, hedge funds, mutual funds, retirement funds and various other commercials are often in the option market and not neutrally weighted. The MMs make money (at least in theory) on the bid/ask spread. Dave

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