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Politics : Formerly About Advanced Micro Devices

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To: Charles R who wrote (104034)4/12/2000 12:20:00 AM
From: Joe NYC  Read Replies (1) of 1577655
 
Chuck,

AMD price action around options expiration seems to be blatantly manipulated to me.

Suppose you sell your call, say 1 contract of Apr 50, and the marketmaker is your counterparty, and he sells his hedge - long stock position - 100 AMD shares. Is it he, the MM who is manipulating the stock, or you who is selling your call that forces his reaction?

If you combine your action with every other call holder who acquired Apr calls over 3 month period, and is disposing within a week (or a day during normal expirations), you will see a downward pressure.

Joe
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