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Technology Stocks : How high will Microsoft fly?
MSFT 507.49-0.6%Nov 17 3:59 PM EST

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To: Matteo who wrote (36931)1/21/2000 12:30:00 PM
From: taxman  Read Replies (1) of 74651
 
"the MM want the options to expire worthless"

i've seen this statement many times and it one more of wall street myths that i disagree with.

for one we don't know what position market makers have--they can be long or they can be short and it can be in puts or it can be in calls.

in any event when a market maker has a substantial risk on his option position, he hedges it. he makes his living on the spread.

regards
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