BIOTECH & TECHNOLOGY INVESTING *UNDERVALUED*{T/A F/A & V} Message Board

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Biotech / Medical : BIOTECH & TECHNOLOGY INVESTING *UNDERVALUED*{T/A F/A & V}

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To: tuck who wrote (252)	3/8/2000 2:31:00 PM
From: tuck	Read Replies (2) of 423

Jeffrey, Here's a chance to study the habits of the market makers in some of the stocks we're following. I can't remember if any of your picks have options, but at least three that I've mentioned do. With expiration drawing nigh, it is time to consider the Stock Price as Funtion of Open Interest Theory. The gist is that market makers will try to keep a stock's price in a range such that the greatest possible numbers of options expire worthless. Sometimes you see it, sometimes you don't. My idea is to take three stocks in our watch list and see if they conform to this theory this month. Then a few more times if so. It could be a great predictor, and especially useful to me as an options trader. STAA: theory calls for 3/17 close between 10 and 12.5 BCHE: theory calls for 22.5 to 25 BMET: theory calls for 30 to 35 quote.cboe.com quote.cboe.com quote.cboe.com I'll keep you updated on this little study, and if you have any optionable stocks to throw into the mix, by all means do so. We could tag 'em somehow on our list, if we want. Cheers, Tuck

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