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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Uncle Frank who wrote (23606)4/26/2000 5:15:00 PM
From: Gerald Walls  Read Replies (1) of 54805
 
I'd be interested to see some data supporting that contention, TP, as my impression is otherwise.

One possible source would be to track the open interest numbers provided in quotes at cboe.com

Selling to close a long position on an option merely transfers ownership to someone else; it doesn't close the option itself.

The way I understand it (but I'm no expert) is that most options are bought and sold by the market maker, not by a cross between a buyer and seller. Each purchase or sale that isn't crossed would affect the net long/short position of the market maker. Except for certain stocks, months, and strikes, options just don't have the volume and liquidity required to efficiently match buyers and seller.
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