Meet Gene, a NASDAQ Market Maker Message Board

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Non-Tech : Meet Gene, a NASDAQ Market Maker

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To: robert packman who wrote (123)	7/29/2000 11:07:06 PM
From: gene_the_mm	Read Replies (1) of 1426

REGARDING OPTIONS EXPIRATION DAY AND MM'S... MM's have no direct connection as to what the price of stocks they make markets is and the strike price of options. OPTIONS SPECIALISTS do care, however, and may give LARGE orders to MM's based on this which would make it appear that some MM's care about the closing price. Also, I do not know of any firms that do this but an MM firm could have a large stock position and hedge it with options. If this were the case they would have an interest in the closing price. HOWEVER, I am almost willing to bet that if this WERE the case that it would be an inherent conflict of interest, and perhaps even illegal, for an MM to try to affect the stock price because of options they hold (not sure but I would guess it would be). Therefore, I do not believe it is the MM's you see playing games with the stocks and their prices. Options specialists? Most likely (just my humble opinion). All the best, -- Gene

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