SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : INPR - Inprise to Borland (BORL)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ghassan I. Ghandour who wrote (3651)12/9/1999 7:36:00 PM
From: Jerry Whlan  Read Replies (3) of 5102
 
What kind of effect does option trading have?

As far as I know, you can't trade derivatives on CORL. There has been plenty of volume in the options market for INPR. My theory is that the options volume is keeping us from seeing the same kind of explosive changes in valuation that CORL has been experiencing. I note that CORL's volume is often much higher than INPR's, despite having only a slightly larger float, but if one factors in the options volume as well, we get another 0.5-1.0M 'shares' traded.

However, although dabbling in options that have now done quite well, on paper, I do not understand enough of the meta-effects of derivative trading to offer any sort of proof of this theory.

Does anyone here, with a better understanding, care to offer a reasoned opinion on my theory?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext